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THE  GEORGE  AND  HELEN  LADD  LIBRARY 

BATES  COLLEGE 
LEWISTON,   MAINE 


BATES  COLLEGE 
LIBRARY 


BATES  COLLEGE 

LIBRARY 
l-EWiSTON.    MAINE 


PUBLIC  PAPERS  OF  THE  PRESIDENTS 
OF  THE  UNITED  STATES 


PUBLIC  PAPERS  OF  THE  PRESIDENTS 
OF  THE  UNITED  STATES 

Harry  S.  Truman 

Containing  the  Public  M.essagesj  SpeecheSj  and 
Statements  of  the  President 

JANUARY      I    TO    DECEMBER    3  I,    I95O 

1950 


'-^^^^2^^"^ 


UNITED   STATES  GOVERNMENT  PRINTING  OFFICE 
WASHINGTON    :    I965 

BATES  COLLEGE 


LIBRARY 


LEV^flSTON.    MAINt 


PUBLISHED   BY   THE 

OFFICE   OF   THE   FEDERAL   REGISTER 

NATIONAL  ARCHIVES   AND   RECORDS   SERVICE 

GENERAL   SERVICES   ADMINISTRATION 


.c^&°^^. 


*/934.* 


For  sale  by  the  Superintendent  of  Documents,  U.S.  Government  Printing  Office 
Washington,  D.C.,  20402  -  Price  $7.75  (cloth) 


FOREWORD 

THE  IMPORTANCE  OF  this  series  lies  in  the  extraordinary  char- 
acter of  the  office  of  President  of  the  United  States. 

A  President's  written  and  spoken  words  can  command  national 
and  international  attention  if  he  has  within  him  the  power  to  attract 
and  hold  that  attention.  It  is  partly  through  the  use  of  this  power 
that  leadership  arises,  events  are  molded,  and  administrations  take 
their  shape. 

It  is  this  power,  quite  as  much  as  powers  written  into  the  Constitu- 
tion, that  gives  to  the  papers  of  Presidents  their  peculiar  and  revealing 
importance. 


PREFACE 

IN  THIS  VOLUME  are  gathered  most  of  the  public  messages  and 
statements  of  the  33d  President  of  the  United  States  that  were  released 
by  the  White  House  during  1950.  Similar  volumes  are  available  cover- 
ing 1945-1949,  and  the  administrations  of  Presidents  Eisenhower  and 
Kennedy.  Volumes  covering  the  period  January  i,  1951-January  20, 
1953,  and  the  period  November  22, 1963-December  31, 1964,  are  under 
preparation. 

This  series  was  begun  in  1957  in  response  to  a  recommendation  of 
the  National  Historical  Publications  Commission.  An  extensive  com- 
pilation of  the  messages  and  papers  of  the  Presidents,  covering  the 
period  1789  to  1897,  was  assembled  by  James  D.  Richardson  and  pub- 
lished under  congressional  authority  between  1896  and  1899.  Since 
that  time  various  private  compilations  were  issued,  but  there  was  no 
uniform,  systematic  publication  comparable  to  the  Congressional 
Record  or  the  United  States  Supreme  Court  Reports,  Many  Presi- 
dential papers  could  be  found  only  in  mimeographed  White  House 
releases  or  as  reported  in  the  press.  The  National  Historical  Publica- 
tions Commission  therefore  recommended  the  establishment  of  an 
official  series  in  which  Presidential  writings  and  utterances  of  a  public 
nature  could  be  made  promptly  available. 

The  Commission's  recommendation  was  incorporated  in  regulations 
of  the  Administrative  Committee  of  the  Federal  Register  issued  under 
section  6  of  the  Federal  Register  Act  (44  U.S.C.  306).  The  Commit- 
tee's regulations,  establishing  the  series  and  providing  for  the  coverage 
of  prior  years,  are  reprinted  at  page  786  as  "Appendix  D." 


VII 


Preface 

CONTENT  AND  ARRANGEMENT 

The  text  of  this  book  is  based  on  Presidential  materials  issued  during 
1950  as  White  House  releases  and  on  transcripts  of  news  conferences. 
A  list  of  White  House  releases  from  which  final  selections  were  made 
is  pubUshed  at  page  765  as  "Appendix  A." 

The  full  text  of  President  Truman's  news  conferences  is  here  pub- 
lished for  the  first  time,  since  direct  quotation  of  the  President's  replies 
usually  was  not  authorized.  Addresses  and  speeches  have  been  printed 
as  actually  delivered. 

Proclamations,  Executive  orders,  and  similar  documents  required  by 
law  to  be  published  in  the  Federal  Register  and  Code  of  Federal 
Regulations  are  not  repeated.  Instead,  they  are  listed  by  number  and 
subject  under  the  heading  "Appendix  B"  at  page  778. 

The  President  is  required  by  statute  to  transmit  numerous  reports 
to  Congress.  Those  transmitted  during  the  period  covered  by  this 
volume  are  listed  at  page  785  as  "Appendix  C." 

The  items  published  in  this  volume  are  presented  in  chronological 
order,  rather  than  being  grouped  in  classes.  Most  needs  for  a  classified 
arrangement  are  met  by  the  subject  index.  For  example,  a  reader 
interested  in  veto  messages  will  find  them  listed  in  the  index  under 
the  heading  "veto  messages." 

The  dates  shown  at  the  end  of  item  headings  are  White  House 
release  dates.  In  instances  where  the  date  of  the  document  differs 
from  the  release  date  that  fact  is  shown  in  brackets  immediately 
following  the  heading.  Other  editorial  devices,  such  as  text  notes, 
footnotes,  and  cross  references,  have  been  supplied  where  needed  for 
purposes  of  clarity. 

Remarks  or  addresses  were  delivered  in  Washington,  D.C.,  unless 


VIII 


Preface 

otherwise  indicated.  Similarly,  statements,  messages,  and  letters  were 
issued  from  the  White  House  in  Washington  unless  otherwise  indicated. 
Original  source  materials,  where  available,  have  been  used  to  pro- 
tect against  substantive  errors  in  transcription.  In  maintaining  the 
integrity  of  the  text,  valuable  assistance  was  furnished  by  Dr.  Philip  C. 
Brooks,  Philip  D.  Lagerquist,  and  Jerry  N.  Hess  of  the  Truman  Library. 
The  planning  and  publication  of  this  series  is  under  the  direction  of 
David  C.  Eberhart  of  the  Office  of  the  Federal  Register.  The  editor 
of  the  present  volume  was  Warren  R.  Reid,  assisted  by  Mildred  B. 
Berry.  Frank  H.  Mortimer  of  the  Government  Printing  OflSce 
developed  the  typography  and  design. 

Wayne  C.  Grover 
Archivist  of  the  United  States 
Lawson  B.  Knott,  Jr. 
Administrator  of  General  Services 
June  15,  1965 


IX 

41-355—^5 2 


CONTENTS 


Page 

FRONTISPIECE — Photograph  courtesy  of  the  Chicago  Tribune. 

FOREWORD V 

PREFACE VII 

LIST  OF  ITEMS XIII 

PUBLIC  PAPERS  OF  HARRY  S.  TRUMAN I 

Appendix  ^— White  House  Press  Releases 765 

Appendix  JS— Presidential  Documents  Published  in  the  Federal 

Register 778 

Appendix  C— Presidential  Reports  to  the  Congress        .        .        .  785 

Appendix  D — Rules  Governing  This  Publication   ....  786 

INDEX 789 


XI 


LIST  OF  ITEMS 


Page 

1  Letter  to  the  Chairman  of  the  President's  Water  Resources 
Policy  Commission.    January  3,  1950  i 

2  Annual  Message  to  the  Congress  on  the  State  of  the  Union. 
January  4,  1950  2 

3  The  President's  News  Conference  of  January  5,  1950  11 

Statement  by  the  President  on  U.S.  Policy  With  Respect  to 
Formosa  11 

4  Remarks  at  the  American  Federation  of  Labor's  Samuel 
Gompers  Centennial  Dinner.    January  5,  1950  17 

5  Statement  by  the  President  on  the  Midcentury  White  House 
Conference  on  Children  and  Youth.    January  6,  1950  18 

6  Annual  Message  to  the  Congress:  The  President's  Economic 
Report.    January  6,  1950  18 

7  Exchange  of  Messages  With  Michael,  Orthodox  Archbishop 

of  North  and  South  America.    January  6,  1950  32 

8  The  President's  News  Conference  on  the  Budget.    January  7, 
1950  32 

9  Annual  Budget  Message  to  the  Congress:  Fiscal  Year  1951. 
January  9, 1950  44 

10  Letter  to  the  U.S.  Representative  on  the  United  Nations  Com- 
mission on  the  Status  of  Women.    January  10, 1950  107 

11  The  President's  News  Conference  of  January  12,  1950  107 


xni 


List  of  Items 

Page 

12  Remarks  at  a  Supper  for  Democratic  Senators  and  Repre- 
sentatives.   January  12,  1950  109 

13  Special  Message  to  the  Congress  on  Synthetic  Rubber.  Janu- 
ary 16,  1950  no 

14  Remarks  at  a  Dinner  Given  by  the  Chairmen  and  Directors 

of  Federal  Reserve  Banks.    January  16, 1950  113 

15  Remarks  to  a  Delegation  From  the  National  Emergency  Civil 
Rights  Mobilization  Conference.    January  17,  1950  115 

16  The  President's  News  Conference  of  January  19,  1950  115 

17  Statement  by  the  President  on  the  Rejection  by  the  House  of 
Representatives  of  the  Korean  Aid  Bill.    January  21,  1950         120 

18  Special  Message  to  the  Congress  on  Tax  Policy.  January  23, 
1950  120 

19  Statement  by  the  President  on  the  New  75-Cent  Minimum 
Wage  Rate.   January  24, 1950  127 

20  Exchange  of  Messages  With  President  Prasad  of  India.  Janu- 
ary 26,  1950  129 

21  Remarks  to  the  Women's  Patriotic  Conference  on  National 
Defense.    January  26,  1950  129 

22  Statement  by  the  President  Upon  Issuing  Order  Providing 
for  the  Administration  of  the  Mutual  Defense  Assistance 
Act.   January  27, 1950  131 

23  The  President's  News  Conference  of  January  27,  1950  132 

24  Letter  Accepting  Resignation  of  Clark  M.  Clifford  as  Special 
Counsel  to  the  President.    January  27,  1950  135 


XIV 


List  of  Items 

Page 

25  Letter  to  the  President  of  the  Senate  and  to  the  Speaker  of  the 
House  on  U.S.  Assistance  to  Palestine  Refugees.  January  30, 
1950  136 

26  Statement  by  the  President  on  the  Hydrogen  Bomb.  Janu- 
ary 31,  1950  138 

27  Telegram  to  Labor  and  Management  Leaders  Proposing  a 
Plan  for  Settling  the  Coal  Industry  Dispute.    January  31, 1950    138 

28  Letter  to  the  Speaker  on  the  Panama  Canal  and  the  Panama 
Railroad  Company.   February  i,  1950  140 

29  The  President's  News  Conference  of  February  2,  1950  140 

30  Statement  by  the  President  on  the  Crusade  Against  Heart 
Disease.    February  2,  1950  145 

31  Remarks  to  a  Group  of  Baptist  Missionaries.  February  3, 1950    146 

32  Statement  by  the  President  on  Appointing  Additional  Mem- 
bers of  the  Committee  on  Religion  and  Welfare  in  the  Armed 
Forces.    February  8,  1950  146 

33  Letter  to  the  Vice  President  Urging  a  Study  of  the  Land  and 
Water  Resources  of  the  New  England  States  and  New  York. 
February  9,  1950  147 

34  The  President's  News  Conference  of  February  9, 1950  149 

35  Letter  to  the  Attorney  General  Directing  Him  To  Petition  for 

an  Injunction  in  the  Coal  Strike.    February  11,  1950  154 

36  Special  Message  to  the  Congress  Transmitting  Report  on  the 
Training  of  Veterans  Under  the  Servicemen's  Readjustment 
Act.    February  13,  1950  155 


XV 


Ltst  of  hems 

Page 

37  Address  Before  the  Attorney  General's  Conference  on  Law 
Enforcement  Problems.    February  15,  1950  156 

38  The  President's  News  Conference  of  February  16,  1950  159 

39  Address  at  the  Jefferson-Jackson  Day  Dinner.  February  16, 
1950  164 

40  Letter  to  Dr.  Irvin  L.  Stewart  on  the  Establishment  of  the 
President's  Communications  Policy  Board.  February  17, 1950    169 

41  Remarks  at  a  Masonic  Breakfast  on  Washington's  Birthday. 
February  22,  1950  171 

42  Address  on  Foreign  Policy  at  the  George  Washington  Na- 
tional Masonic  Memorial.   February  22,  1950  171 

43  Telegram  to  Labor  and  Management  Leaders  in  the  Commu- 
nications Industry  Urging  a  60-Day  Truce.  February  22, 1950    176 

44  The  President's  News  Conference  of  February  23,  1950  177 

45  Radio  Remarks  Opening  the  Red  Cross  Campaign.  Febru- 
ary 28, 1950  180 

46  The  President's  News  Conference  of  March  2,  1950  181 

47  Letter  to  the  Chairman,  House  Committee  on  Education  and 
Labor,  on  Federal  Aid  to  Education.   March  2, 1950  185 

48  Remarks  to  a  Group  From  the  Ninth  Annual  Science  Talent 
Search.    March  2,  1950  187 

49  Special  Message  to  the  Congress  on  the  Coal  Strike.  March  3, 
1950  187 

50  Letter  to  the  President  of  the  Senate  and  to  the  Speaker  of  the 
House  Transmitting  Bill  for  the  Establishment  of  a  Commis- 
sion on  the  Coal  Industry.   March  7, 1950  191 

XVI 


Last  of  Items 

Page 

51  Statement  by  the  President  on  the  Record  of  the  Home 
Owner's  Loan  Corporation.   March  9,  1950  192 

52  The  President's  News  Conference  of  March  9,  1950  193 

53  Special  Message  to  the  Congress  Summarizing  the  New  Re- 
organization Plans.    March  13,  1950  195 

54  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plans  I  Through  13  of  1950.    March  13,  1950  199 

55  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  I  of  1950.    March  13, 1950  203 

56  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  2  of  1950.   March  13, 1950  204 

57  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  3  of  1950.  March  13, 1950  204 

58  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  4  of  1950.  March  13, 1950  205 

59  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  5  of  1950.  March  13, 1950  205 

60  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  6  of  1950.  March  13, 1950  206 

61  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  7  of  1950.  March  13, 1950  207 

62  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  8  of  1950.  March  13, 1950  207 

63  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  9  of  1950.  March  13, 1950  207 


XVII 


List  of  hems 


Page 


64  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  10  of  1950.  March  13, 1950  208 

65  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  II  of  1950.  March  13, 1950  208 

66  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  12  of  1950.   March  13, 1950  209 

67  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  13  of  1950.   March  13, 1950  209 

68  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  14  of  1950.    March  13, 1950  210 

69  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plans  15, 16,  and  17  of  1950.  March  13, 1950  211 

70  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  15  of  1950.    March  13, 1950  215 

71  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  16  of  1950.   March  13, 1950  216 

72  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  17  of  1950.   March  13, 1950  216 

73  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  18  of  1950.   March  13, 1950  217 

74  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  19  of  1950.  March  13, 1950  219 

75  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  20  of  1950.  March  13, 1950  221 

76  Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  21  of  1950.  March  13, 1950  223 


xvin 


List  of  Items 

Page 

77  Statement  by  the  President  on  the  National  Capital  Sesqui- 
centennial  Commission.   March  15,  1950  227 

78  Letter  to  the  Chairman,  House  Committee  on  Foreign  Affairs, 
Urging  Enactment  of  the  Foreign  Assistance  Act.  March  25, 
1950  228 

79  Letters  Regarding  Disclosure  of  Confidential  Files  on  Em- 
ployee Loyalty.    March  28,  1950  229 

80  The  President's  News  Conference  at  Key  West.  March  30, 
1950  232 

81  Letter  to  Gordon  Gray  Regarding  His  Appointment  as 
Special  Assistant  to  the  President.    April  3,  1950  238 

82  Letter  to  Senator  Tydings  Again  Refusing  to  Disclose  Con- 
fidential Information  on  Employee  Loyalty.   April  3, 1950        240 

83  Special  Message  to  the  Congress  Upon  Approving  Bill  Relat- 
ing to  Cotton  and  Peanut  Acreage  Allotments  and  Marketing 
Quotas.   April  3,  1950  242 

84  Special  Message  to  the  Congress  on  the  Unemployment  Insur- 
ance System.   April  6, 1950  244 

85  Remarks  of  Welcome  to  the  President  of  Chile  at  the  Wash- 
ington National  Airport.   April  12,  1950  250 

86  The  President's  News  Conference  of  April  13, 1950  250 

87  Remarks  to  Members  of  the  U.S.  National  Commission  for 
UNESCO.   April  13,  1950  256 

88  Veto  of  Bill  To  Amend  the  Natural  Gas  Act  of  1938.  April  15, 
1950  257 

89  Statement  by  the  President  on  the  Importance  of  Maintaining 

a  Bipartisan  Foreign  Policy.   April  18, 1950  258 

XIX 


List  of  Items 

Page 

90  Letter  to  the  Speaker  on  the  PHght  of  Greek  Children  Ab- 
ducted by  Communist  Guerrilla  Forces.   April  19,  1950  259 

91  Statement  by  the  President  Upon  Signing  Bill  for  the  Aid  of 
Navajo  and  Hopi  Indian  Tribes.   April  19, 1950  259 

92  Address  on  Foreign  Policy  at  a  Luncheon  of  the  American 
Society  of  Newspaper  Editors.   April  20,  1950  260 

93  Special  Message  to  the  Congress  Urging  Extension  of  Rent 
Control.    April  21, 1950  265 

94  Address  at  a  Dinner  of  the  Federal  Bar  Association.    April 

24,  1950  267 

95  Letter  to  the  Chairman  of  the  President's  Committee  on 
Religion  and  Welfare  in  the  Armed  Forces.   April  27, 1950    272 

96  Statement  by  the  President  Announcing  Steps  Taken  To 
Develop  a  Bipartisan  Approach  to  Foreign  PoUcy.  April  27, 
1950  273 

97  The  President's  News  Conference  of  April  27, 1950  274 

98  Letter  to  Joseph  C.  Grew  and  General  Lucius  D.  Clay  of  the 
National  Committee  for  a  Free  Europe.   May  i,  1950  278 

99  Special  Message  to  the  Senate  Transmitting  Treaty  With 
Canada  Concerning  Uses  of  the  Waters  of  the  Niagara  River. 
May  2, 1950  279 

100    Special  Message  to  the  Congress  Transmitting  First  Report 

of  the  War  Claims  Commission.    May  3,  1950  281 

loi    Message  to  the  United  States  Technical  Conference  on  Air 

Pollution.    May  3,  1950  281 

102    Remarks  of  Welcome  to  the  Prime  Minister  of  Pakistan  at 

the  Washington  National  Airport.   May  3, 1950  282 

XX 


List  of  Items 

Page 

103  Statement  by  the  President  on  Foreign  Policy  Legislation 
Following  a  Meeting  With  the  Chairman  of  the  House 
Foreign  Affairs  Committee.    May  4,  1950  283 

104  Exchange  of  Messages  With  the  President  of  Chile.  May  4, 
1950  283 

105  The  President's  News  Conference  of  May  4, 1950  284 

106  Special  Message  to  the  Congress  on  the  Problems  of  Small 
Business.    May  5,  1950  288 

107  Letter  to  the  Chairman,  Senate  Committee  on  Interior  and 
Insular  Affairs,  on  Statehood  for  Alaska  and  Hawaii.    May 

6, 1950  294 

108  Statement  by  the  President  Upon  Signing  Bill  Establishing 

a  Uniform  Code  of  Military  Justice.    May  6,  1950  295 

109  Statement  by  the  President  on  the  Death  of  President  Victor 
Roman  y  Reyes  of  Nicaragua.    May  7,  1950  295 

no    Rear  Platform  and  Other  Informal  Remarks  in  Illinois, 

Iowa,  and  Nebraska.    May  8,  1950  296 

111  Address  in  Lincoln,  Nebraska.    May  8,  1950  309 

112  Special  Message  to  the  Congress  Transmitting  Reorganiza- 
tion Plan  22  of  1950.   May  9,  1950  315 

113  Special  Message  to  the  Congress  Transmitting  Reorganiza- 
tion Plan  23  of  1950.   May  9,  1950  316 

114  Special  Message  to  the  Congress  Transmitting  Reorganiza- 
tion Plan  24  of  1950.   May  9,  1950  318 

115  Special  Message  to  the  Congress  Transmitting  Reorganiza- 
tion Plan  25  of  1950.   May  9, 1950  320 


XXI 


List  of  Items 

Page 

ii6    Address  in  Casper,  Wyoming.   May  9, 1950  321 

117  Rear  Platform  Remarks  in  Wyoming.    May  9,  1950  327 

118  Address  in  Cheyenne,  Wyoming.    May  9, 1950  329 

119  Address  in  Laramie,  Wyoming.    May  9,  1950  333 

120  Statement  by  the  President  Upon  Signing  Bill  Creating  the 
National  Science  Foundation.    May  10,  1950  338 

121  Rear  Platform  and  Other  Informal  Remarks  in  Idaho,  Ore- 
gon, and  Washington.   May  10,  1950  339 

122  Address  in  Pendleton,  Oregon.    May  10, 1950  358 

123  Telegram  to  the  President  of  the  Senate  Concerning  Reor- 
ganization Plan  12  of  1950.    May  11,  1950  363 

124  Rear  Platform  and  Other  Informal  Remarks  in  Washington, 
Idaho,  and  Montana.    May  11,  1950  364 

125  Address  at  the  Dedication  of  the  Grand  Coulee  Dam.    May 

II,  1950  369 

126  Address  in  Spokane  at  Gonzaga  University.    May  11,  1950  374 

127  Rear  Platform  Remarks  in  Montana.   May  12,  1950  377 

128  Address  in  Butte,  Montana.   May  12, 1950  387 

129  Rear  Platform  and  Other  Informal  Remarks  in  Montana, 
North  Dakota,  and  Minnesota.   May  13,  1950  391 

130  Address  in  Fargo,  North  Dakota.   May  13,  1950  399 

131  Rear  Platform  and  Other  Informal  Remarks  in  Wisconsin. 
May  14,  1950  404 


xxn 


LisS  of  hems 

Page 

132  Address  at  the  Dedication  of  the  Credit  Union  National  As- 
sociation's Filene  House,  Madison,  Wisconsin.   May  14, 1950    405 

133  Radio  Remarks  Opening  the  Savings  Bond  Drive.  May  15, 
1950  408 

134  Address  in  Chicago  at  the  National  Democratic  Conference 
and  Jefferson  Jubilee.   May  15, 1950  409 

135  Rear  Platform  Remarks  at  Cumberland,  Maryland.  May  16, 
1950  414 

136  Address  on  the  Occasion  of  the  Publication  of  the  First  Vol- 
ume of  the  Jefferson  Papers.    May  17,  1950  416 

137  The  President's  New^s  Conference  of  May  18, 1950  418 

Statement  by  the  President  Concerning  the  Proposed  Pool- 
ing of  the  French  and  German  Steel  and  Coal  Industries       418 

138  Remarks  at  the  Armed  Forces  Dinner.   May  19,  1950  423 

139  Remarks  at  the  Democratic  Women's  National  Council  Din- 
ner.  May  20,  1950  425 

140  Special  Message  to  the  Congress  Following  the  Signing  of 

the  Rivers  and  Harbors  Bill.    May  22,  1950  427 

141  Statement  by  the  President  in  Response  to  the  Report  of  the 
Committee  on  Equality  of  Treatment  and  Opportunity  in 

the  Armed  Services.   May  22,  1950  431 

142  Letters  of  Appreciation  on  the  Third  Anniversary  of  the 
Greek-Turkish  Aid  Program.   May  22, 1950  432 

143  Message  to  the  Congress  Transmitting  the  Fourth  Annual 
Report  on  U.S.  Participation  in  the  United  Nations.  May  22, 
1950  433 


xxni 


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144  Remarks  to  Delegates  to  the  Fifth  Annual  Conference  on 
Citizenship.   May  23, 1950  436 

145  Remarks  to  a  Group  From  the  Ohio  Farm  Bureau.  May  24, 
1950  437 

146  The  President's  News  Conference  of  May  25, 1950  438 

147  Joint  Declaration  With  the  United  Kingdom  and  France 

on  the  Arab  States  and  Israel.    May  25,  1950  441 

148  Statement  by  the  President  on  the  Joint  Declaration  on  the 
Near  East.    May  25,  1950  442 

149  Special  Message  to  the  Congress  Transmitting  Reorganiza- 
tion Plan  26  of  1950.   May  31, 1950  442 

150  Special  Message  to  the  Congress  Transmitting  Reorganiza- 
tion Plan  27  of  1950.   May  31,  1950  443 

151  Special  Message  to  the  Congress  on  Military  Aid.  June  i, 
1950  445 

152  The  President's  News  Conference  of  June  i,  1950  449 

153  White  House  Statement  Announcing  the  Establishment  of 
the  President's  Commission  on  Migratory  Labor.  June  3, 
1950  452 

154  Statement  by  the  President  Upon  Signing  the  Foreign  Eco- 
nomic Assistance  Act.   June  5, 1950  453 

155  Address  Before  the  President's  Conference  on  Industrial 
Safety.    June  5,  1950  455 

156  Statement  by  the  President  Upon  Appointing  a  Committee 

To  Review  Veterans  Hospitals.    June  5,  1950  458 


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157  Address  at  a  Dinner  of  the  Better  Business  Bureaus.  June  6, 
1950  458 

158  Remarks  at  the  91st  Annual  National  Convention  of  the 
Augustana  Lutheran  Church.    June  7,  1950  463 

159  Commencement  Address  at  the  University  of  Missouri. 
June  9,  1950  464 

160  Rear  Platform  and  Other  Informal  Remarks  in  Missouri. 
June  9,  1950  468 

161  Informal  Remarks  in  St.  Louis  in  Connection  With  the  30th 
Reunion  of  the  35th  Division  Association.    June  10, 1950         470 

162  Address  in  St.  Louis  at  the  Site  of  the  Jefferson  National 
Expansion  Memorial.    June  10,  1950  473 

163  Remarks  to  the  National  Association  of  Radio  Farm  Direc- 
tors.   June  12,  1950  477 

164  White  House  Statement  Announcing  the  Estabhshment  of 
the  Arkansas-White-Red  River  Basins  Inter-Agency  Com- 
mittee.   June  14,  1950  478 

165  Remarks  at  the  U.S.  Marine  Corps  Base,  Quantico,  Virginia. 
June  15,  1950  478 

166  Veto  of  Bill  To  Define  the  Application  of  the  Federal  Trade 
Commission  Act  and  the  Clayton  Act  to  Certain  Pricing 
Policies.    June  16, 1950  480 

167  Statement  by  the  President  Upon  Signing  Bill  Amending 

the  Displaced  Persons  Act.    June  16,  1950  483 

168  Memorandum  to  Department  and  Agency  Heads  Request- 
ing Their  Cooperation  With  the  Senate  Special  Crime 
Investigating  Committee.    June  17,  1950  484 


XXV 


List  of  Items 

Page 

i6g    The  President's  News  Conference  of  June  22,  1950  485 

170  Veto  of  Bill  Relating  to  the  Promotion  of  Veterans  of  World 
War  II  in  the  Field  Service  of  the  Post  Office  Department. 
June  23,  1950  487 

171  Address  in  Baltimore  at  the  Dedication  of  Friendship  Inter- 
national Airport.    June  24,  1950  489 

172  Statement  by  the  President  on  the  Violation  of  the  38th 
Parallel  in  Korea.    June  26,  1950  491 

173  Statement  by  the  President  on  the  Situation  in  Korea.    June 

27,  1950  492 

174  Address  at  the  Laying  of  the  Cornerstone  of  the  new  U.S. 
Courts  Building  for  the  District  of  Columbia.   June  27, 1950    493 

175  Exchange  of  Messages  With  Governor  Dewey  Concerning 
U.S.  Action  in  Korea.    June  27,  1950  496 

176  Remarks  to  Members  of  Reserve  OflScers  Association.    June 

28,  1950  496 

177  Address  Before  the  Annual  Convention  of  the  American 
Newspaper  Guild.    June  28,  1950  498 

178  Remarks  to  the  Washington  Student  Citizenship  Seminar. 
June  28,  1950  502 

179  The  President's  News  Conference  of  June  29,  1950  502 

180  Statement  by  the  President  Announcing  an  Economic  Sur- 
vey Mission  to  the  Philippines.    June  29,  1950  506 

181  Exchange  of  Messages  With  the  Presidents  of  Costa  Rica,  the 
Dominican  Republic,  Nicaragua,  and  Colombia  Concern- 
ing the  U.S.  Decision  on  Korea.    June  29, 1950  507 


XXVI 


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Page 

182  Veto  of  Bill  To  Amend  the  Hatch  Act.   June  30, 1950  509 

183  Veto  of  Bill  To  Amend  the  War  Contractors  Relief  Act. 
June  30,  1950  510 

184  White  House  Statement  Following  a  Meeting  Between  the 
President  and  Top  Congressional  and  Military  Leaders  To 
Review  the  Situation  in  Korea.   June  30, 1950  513 

185  Address  at  Valley  Forge  at  the  Boy  Scout  Jamboree.  June  30, 
1950  513 

186  The  President's  News  Conference  of  July  6, 1950  516 

187  Statement  by  the  President  Regarding  a  Request  for  Supple- 
mental Appropriations  for  the  Atomic  Energy  Commission. 
July  7,  1950  519 

188  Statement  by  the  President  Upon  Issuing  Order  Averting  a 
Railroad  Strike.    July  8,  1950  519 

189  Statement  by  the  President  Announcing  the  Designation  of 
General  MacArthur  To  Lead  the  Allied  Military  Forces  in 
Korea.    July  8, 1950  520 

190  Letter  to  the  Speaker  on  the  Need  for  an  Expanded  Truth 
Campaign  To  Combat  Communism.    July  13,  1950  521 

191  The  President's  News  Conference  of  July  13,  1950  522 

192  Letters  to  Agency  Heads  on  the  Need  for  Restricting  Hous- 
ing Credit.    July  18, 1950  525 

193  Special  Message  to  the  Congress  Reporting  on  the  Situation 

in  Korea.    July  19,  1950  527 

194  Radio  and  Television  Address  to  the  American  People  on 

the  Situation  in  Korea.    July  19,  1950  537 


xxvii 


List  of  Items 

Page 

195  Statement  by  the  President  on  the  Appointment  of  Charles 
M.  Spoflord  as  Deputy  U.S.  Representative  to  the  North 
Atlantic  Council.    July  20,  1950  542 

196  Letter  to  Agency  Heads  Directing  a  Review  of  Government 
Programs.    July  21,  1950  543 

197  Message  to  Dr.  Daniel  A.  Poling,  President  of  the  World's 
Christian  Endeavor  Union.   July  21, 1950  544 

198  Statement  by  the  President  on  the  Death  of  Mackenzie  King. 
July  23,  1950  544 

199  Statement  by  the  President  on  Reporting  Information  Re- 
lating to  Espionage,  Sabotage,  and  Subversive  Activities. 
July  24, 1950  545 

200  Letter  to  the  Chairman,  Senate  Committee  on  Finance,  on 

the  Need  for  an  Increase  in  Taxes.   July  25, 1950  545 

201  Statement  by  the  President  Upon  Signing  Bill  Continuing 

the  Military  Aid  Program.    July  26, 1950  547 

202  Special  Message  to  the  Congress:  The  President's  Midyear 
Economic  Report.    July  26, 1950  548 

203  The  President's  News  Conference  of  July  27, 1950  560 

204  Letter  to  the  Speaker  Transmitting  Supplemental  Estimate 

of  Appropriations  for  Military  Assistance.    August  i,  1950    564 

205  Letter  to  Committee  Chairmen  on  the  Defense  Production 
Bill.    August  I,  1950  566 

206  The  President's  News  Conference  of  August  3, 1950  568 

207  Special  Message  to  the  Congress  on  the  Internal  Security  of 

the  United  States.    August  8,  1950  571 


xxvni 


List  of  Items 

Page 

208  Remarks  to  the  President's  Committee  on  National  Employ 

the  Physically  Handicapped  Week.   August  9, 1950  577 

209  The  President's  News  Conference  of  August  10, 1950  579 

210  Veto  of  Bill  Relating  to  the  Census  in  South  Parkersburg, 
West  Virginia.    August  11,  1950  583 

211  Message  to  President  Syngman  Rhee  on  the  Second  Anni- 
versary of  the  Republic  of  Korea.    August  14, 1950  584 

212  Statement  by  the  President  on  the  looth  Anniversary  of  the 
Death  of  General  Jose  de  San  Martin.    August  16,  1950  584 

213  Letter  to  the  Chairman,  Senate  Committee  on  Public  Works, 

on  the  Federal-Aid  Highway  Bill.   August  17, 1950  585 

214  The  President's  News  Conference  of  August  17,  1950  586 

215  Letter  to  the  President  of  the  Senate  on  the  Defense  Produc- 
tion Bill.    August  185  1950  589 

216  Veto  of  Bill  To  Amend  the  War  Contractors  Relief  Act. 
August  21,  1950  590 

217  The  President's  News  Conference  of  August  24, 1950  592 

218  Statement  by  the  President  Upon  Nominating  Walter  J. 
Donnelly  as  Minister  and  U.S.  High  Commissioner  for 
Austria.    August  24,  1950  595 

219  Statement  by  the  President  Upon  Nominating  U.S.  Repre- 
sentatives to  the  Fifth  Session  of  the  U.N.  General  Assembly. 
August  24,  1950  596 

220  Letter  to  the  Speaker  on  the  Appropriation  for  Foreign  Aid. 
August  25,  1950  596 


XXIX 


List  of  Items 

Page 

221  Statement  by  the  President  Upon  Issuing  Order  Taking  Con- 
trol of  the  Nation's  Railroads.   August  25,  1950  597 

222  Letter  to  the  Chairman,  Senate  Committee  on  Foreign  Rela- 
tions, Urging  Early  Ratification  of  the  Genocide  Convention. 
August  26,  1950  598 

223  Letter  to  Ambassador  Warren  Austin  Restating  the  U.S. 
Position  on  Formosa.    August  27,  1950  599 

224  Statement  by  the  President  Upon  Signing  the  Social  Security 
Act  Amendments.    August  28,  1950  600 

225  Letter  to  Committee  Chairmen  on  Universal  Military  Train- 
ing.  August  29, 1950  601 

226  Message  to  General  MacArthur  Regarding  the  Withdrawal 
of  the  General's  Message  to  the  Veterans  of  Foreign  Wars. 
August  29, 1950  602 

227  Letter  to  Senator  Flanders  on  the  Appropriation  for  the 
Campaign  of  Truth.  August  30, 1950  602 

228  Statement  by  the  President:  Labor  Day.    August  31, 1950         604 

229  Letter  to  the  General  Chairman  of  the  President's  Highway 
Safety  Conference.    August  31,  1950  605 

230  The  President's  News  Conference  of  August  31,  1950  606 

231  Letter  to  the  Ambassador  of  Chile  on  the  U.S.  Excise  Tax  on 
Copper.    September  i,  1950  608 

232  Radio  and  Television  Report  to  the  American  People  on  the 
Situation  in  Korea.    September  i,  1950  609 

233  Veto  of  Bill  Relating  to  Spanish-American  War  Veterans. 
September  6, 1950  614 


XXX 


Ust  of  Items 

Page 

234  Statement  by  the  President  Upon  Signing  the  General  Ap- 
propriation Act.    September  6,  1950  616 

235  Letters  to  the  Commandant  of  the  Marine  Corps  League  and 

to  the  Commandant  of  the  Marine  Corps.  September  6, 1950    617 

236  Statement  by  the  President  Upon  Signing  Bill  Regarding 
Marine  War-Risk  Insurance.   September  7, 1950  618 

237  Remarks  to  Members  of  the  Marine  Corps  League.  Septem- 
ber 7, 1950  619 

238  The  President's  News  Conference  of  September  7,  1950  619 

239  Remarks  to  the  National  Citizens'  Committee  for  United 
Nations  Day.    September  7,  1950  623 

240  Statement  by  the  President  Upon  Signing  Order  Concern- 
ing the  Point  4  Program.   September  8,  1950  623 

241  Veto  of  Bill  To  Amend  the  Nationality  Act  of  1940,  as 
Amended.    September  9,  1950  624 

242  Statement  by  the  President  Upon  Approving  an  Increase  in 
U.S.  Forces  in  Western  Europe.    September  9,  1950  626 

243  Radio  and  Television  Address  to  the  American  People  Fol- 
lowing the  Signing  of  the  Defense  Production  Act.  Sep- 
tember 9,  1950  626 

244  Statement  by  the  President  Upon  Signing  the  Budget  and 
Accounting  Procedures  Act.    September  12,  1950  631 

245  Letter  Accepting  Resignation  of  Louis  Johnson  as  Secretary 

of  Defense.    September  12,  1950  632 

246  Letter  to  Committee  Chairmen  Transmitting  Bill  To  Permit 
General  Marshall  To  Serve  as  Secretary  of  Defense.  Sep- 
tember 13,  1950  633 

XXXI 


List  of  Items 

Page 

247  Remarks  to  the  National  Association  of  Postal  Supervisors. 
September  13,  1950  634 

248  Statement  by  the  President  Upon  Signing  Bill  Establishing 

a  New  Grand  Teton  National  Park.    September  14,  1950    635 

249  Letter  to  Senator  Thomas  on  the  Distribution  of  Surplus 
Perishables  to  Welfare  and  ReUef  Agencies.  September  14, 
1950  636 

250  The  President's  News  Conference  of  September  14, 1950  637 
Statement  by  the  President  on  the  Japanese  Peace  Treaty         637 

251  Special  Message  to  the  Congress  Transmitting  a  Report  of 

the  National  Security  Resources  Board.   September  18, 1950    641 

252  Letter  to  Committee  Chairmen  on  the  Wherry  Amendment 
to  the  Supplemental  Appropriations  Bill.  September  20, 
1950  641 

253  The  President's  News  Conference  of  September  21,  1950        643 

254  Veto  of  the  Internal  Security  Bill.    September  22, 1950  645 

255  Recorded  Address  for  Broadcast  on  Democratic  Women's 
Day.    September  27, 1950  653 

256  Memorandum  of  Disapproval  of  Bill  Relating  to  a  Claim  of 
the  Board  of  County  Commissioners  of  Sedgwick  County, 
Kansas.    September  28,  1950  655 

257  Memorandum  of  Disapproval  of  Bill  To  Amend  the  Mer- 
chant Ship  Sales  Act  of  1946.    September  28,  1950  656 

258  The  President's  News  Conference  of  September  28,  1950        657 

259  Memorandum  on  the  Need  for  Protecting  Free  Enterprise 
During  the  Defense  Emergency.    September  29,  1950  661 

XXXII 


List  of  Items 

Page 

260  Message  Congramlating  General  MacArthur  on  the  Liber- 
ation of  Seoul.    September  29,  1950  662 

261  Letter  to  the  Vice  President  on  the  Need  for  Repatriating 
Displaced  Greek  Children.    September  29,  1950  663 

262  Radio  Remarks  Opening  the  Community  Chest  Campaign. 
September  29,  1950  663 

263  Remarks  Upon  Awarding  the  Congressional  Medal  of 
Honor  to  Maj.  Gen.  William  F.  Dean.   September  30,  1950    664 

264  Statement  by  the  President  on  His  Forthcoming  Meeting 
With  General  MacArthur.    October  10,  1950  665 

265  Letter  Concerning  the  Establishment  of  an  Interagency 
Committee  To  Study  the  Resources  and  Development  of 
New  England  and  New  York.    October  ii,  1950  666 

266  Remarks  in  St.  Louis  at  the  Installation  of  Mary  Jane  Tru- 
man as  Worthy  Grand  Matron,  Order  of  the  Eastern  Star 

for  Missouri.    October  11,  1950  669 

267  Remarks  in  Pearl  Harbor  at  the  Commissioned  Officers 
Mess.    October  13,  1950  670 

268  Statement  by  the  President  on  His  Meeting  With  General 
MacArthur  at  Wake  Island.    October  15,  1950  672 

269  Address  in  San  Francisco  at  the  War  Memorial  Opera  House. 
October  17,  1950  673 

270  The  President's  News  Conference  of  October  19, 1950  679 

271  Address  in  New  York  City  Before  the  United  Nations  Gen- 
eral Assembly.   October  24, 1950  683 

272  Remarks  to  Members  of  the  National  Guard  Association. 
October  25,  1950  687 

41-355—65 3  XXXIII 


List  of  Items 

Page 

273  The  President's  News  Conference  of  October  26,  1950  689 

274  Letter  to  General  Geoffrey  Keyes,  Retiring  U.S.  High  Com- 
missioner in  Austria.    October  30, 1950  692 

275  Remarks  in  Arlington  Cemetery  at  the  Unveiling  of  the 
Statue  of  Sir  John  Dill.    November  i,  1950  693 

276  Statement  by  the  President  on  the  Death  of  George  Bernard 
Shaw.    November  2,  1950  694 

277  Message  to  the  Governor  of  Puerto  Rico  Regarding  the 
Recent  Uprisings.   November  2, 1950  694 

278  The  President's  News  Conference  of  November  2, 1950  694 

279  Address  in  Kiel  Auditorium,  St.  Louis.    November  4,  1950    697 

280  Remarks  in  Independence  at  the  Liberty  Bell  Luncheon. 
November  6,  1950  703 

281  Address  in  Independence  at  the  Dedication  of  the  Liberty 
Bell.    November  6,  1950  704 

282  Statement  by  the  President  in  Response  to  the  Gray  Report 

on  Foreign  Economic  Policy.   November  12,  1950  707 

283  Letter  to  the  Chairman,  Civil  Service  Commission,  Upon 
Signing  Order  Establishing  Special  Personnel  Procedures  in 
the  Interest  of  the  National  Defense.    November  13,  1950      708 

284  Letter  to  Committee  Chairmen  on  Taxation  of  Excess 
Profits.   November  14,  1950  709 

285  Statement  by  the  President  Urging  Support  of  the  CARE- 
for-Korea  Campaign.    November  14,  1950  710 

286  Statement  by  the  President  on  the  Christmas  Seal  Campaign. 
November  16,  1950  711 


XXXIV 


List  of  Items 

Page 

287  The  President's  News  Conference  of  November  16,  1950        711 

. .    Statement  by  the  President  on  the  Chinese  Intervention  in 
Korea  711 

288  Memorandum  Limiting  the  Number  of  Supergrade  Posi- 
tions in  Defense  Agencies.  November  21, 1950  716 

289  Letter  to  the  Chairman,  Advisory  Board  on  International 
Development,  on  Foreign  Economic  Policy.  November  24, 
1950  717 

290  Letter  to  Committee  Chairmen  on  Aid  to  Yugoslavia.  No- 
vember 24,  1950  718 

291  Letter  to  the  President  of  the  Senate  on  Statehood  for  Hawaii 
and  Alaska.    November  27,  1950  719 

292  Letter  to  Committee  Chairmen  Recommending  Extension 

of  Rent  Control.    November  27,  1950  720 

293  Special  Message  to  the  Congress  Urging  Legislation  Author- 
izing Further  Assistance  to  Yugoslavia.   November  29, 1950    721 

294  Statement  by  the  President  on  the  Advisory  Board  on  Inter- 
national Development.    November  29,  1950  723 

295  The  President's  News  Conference  of  November  30,  1950         724 
Statement  by  the  President  on  the  Chinese  Invasion  in  Korea    724 

296  Special  Message  to  the  Congress  Requesting  Additional  Ap- 
propriations for  Defense.    December  i,  1950  728 

297  Statement  by  the  President  Making  Public  a  Report  Entitled 
"The  Military  Chaplaincy."    December  i,  1950  732 

298  Letter  to  the  President  of  the  Senate  and  to  the  Speaker  of 
the  House  on  Vocational  Rehabilitation  of  Disabled  Vet- 
erans.  December  4,  1950  732 

XXXV 


List  of  hems 

Page 

299  Address  Before  the  Midcentury  White  House  Conference 

on  Children  and  Youth.    December  5,  1950  733 

300  Statement  by  the  President  on  the  Death  of  Charles  G.  Ross. 
December  5, 1950  737 

301  Joint  Statement  Following  Discussions  With  the  Prime  Min- 
ister of  Great  Britain.   December  8,  1950  738 

302  White  House  Statement  Concerning  a  Meeting  With  the 
Congressional  Leaders  To  Discuss  the  National  Emergency. 
December  13,  1950  741 

303  Radio  and  Television  Report  to  the  American  People  on  the 
National  Emergency.    December  15,  1950  741 

304  Proclamation  2914:  Proclaiming  the  Existence  of  a  National 
Emergency.  December  16,  1950  746 

305  Statement  by  the  President  on  Secretary  Acheson's  Attend- 
ance at  the  Council  Meetings  of  the  North  Atlantic  Treaty 
Powers.   December  17,  1950  747 

306  Statement  by  the  President  Making  Public  a  Report  by  the 
Water  Resources  Policy  Commission.    December  17,  1950    748 

307  Letter  to  the  President  of  the  Senate  and  to  the  Speaker  of 
the  House  Asking  for  Additional  Emergency  Legislation. 
December  18,  1950  749 

308  Message  to  the  Secretary  of  State  Designating  General  Eisen- 
hower as  Supreme  Allied  Commander,  Europe.  Decem- 
ber 19,  1950  750 

309  The  President's  News  Conference  of  December  19,  1950         751 
. .     Statement  by  the  President  in  Support  of  Secretary  Acheson    751 


XXXVI 


L/V/  of  Items 

Page 

310  Letter  to  General  Eisenhower  on  His  Designation  as  Su- 
preme Allied  Commander  in  Europe.    December  19,  1950    754 

311  Statement  by  the  President  Following  a  Report  by  Secretary 
Acheson  on  His  Meeting  With  the  Ministers  of  the  North 
Atlantic  Treaty  Nations.    December  21,  1950  755 

312  Remarks  in  Kansas  City  at  a  Dinner  of  the  Knights  of  the 
Red  Cross  of  Constantine.   December  22, 1950  756 

313  Remarks  in  Kansas  City  at  a  Luncheon  for  the  Press.  De- 
cember 23, 1950  757 

314  Remarks  in  Grandview,  Missouri,  at  a  Meeting  of  the  Order 

of  the  Eastern  Star.    December  23,  1950  758 

315  Remarks  at  the  Dedication  Services  of  the  Grandview  Bap- 
tist Church.    December  24,  1950  758 

316  Recorded  Message  for  Broadcast  on  World  Day  of  Prayer. 
December  24,  1950  759 

317  Address  Recorded  for  Broadcast  on  the  Occasion  of  the 
Lighting  of  the  National  Community  Christmas  Tree  on  the 
White  House  Grounds.    December  24,  1950  759 

318  The  President's  News  Conference  of  December  28,  1950  760 

319  Statement  by  the  President  Upon  Signing  Bill  Amending 

the  Clayton  Act.    December  29,  1950  763 

320  Letter  to  the  President  of  the  Senate  and  to  the  Speaker  of 
the  House  Recommending  the  Posthumous  Appointment  of 
General  Walker  to  the  Grade  of  General  in  the  Army  of  the 
United  States.    December  29,  1950  763 


XXXVII 


Hany  S.  Truman 
1950 


I    Letter  to  the  Chairman  of  the  President's  Water  Resources 
Policy  Commission.    January  3,  1950 


Dear  Mr,  Coo\e: 

For  more  than  a  century,  the  Federal  Gov- 
ernment has  played  a  vital  role  in  harnessing 
our  water  resources  and  converting  them  to 
the  beneficial  and  productive  use  of  the 
Nation. 

Over  this  period  our  v^ater  resources  pol- 
icies have  been  constantly  modified  and  ad- 
justed to  meet  the  emerging  needs  of  our 
complex  and  dynamic  society.  It  has  not 
alv^^ays  been  possible,  however,  to  decide  in- 
dividual changes  in  policy  in  the  light  of 
broad  national  objectives.  Frequendy,  new 
policies  which  have  been  developed  to  meet 
specific  situations  or  to  solve  particular  so- 
cial and  economic  needs  existing  at  the  time 
have  produced  inconsistencies  in  our  na- 
tional water  resources  policies. 

Within  the  past  several  years  the  need  for 
careful  review  and  reappraisal  of  our  na- 
tional water  resources  policies  and  related 
land  use  problems  has  become  increasingly 
apparent.  On  several  occasions,  during  the 
recent  session  of  Congress,  I  called  attention 
to  the  need  for  developing  a  consistent  and 
comprehensive  policy  with  regard  to  our 
whole  water  resources  program.  In  many 
cases,  piece-meal  or  partial  approaches  to 
a  problem  as  broad  as  water  resources  de- 
velopment tend  to  confuse,  rather  than  clar- 
ify, many  of  the  basic,  underlying  issues. 
It  is  essential  in  my  judgment  that  a  compre- 
hensive study  and  review  be  made  of  all 
existing  water  resources  legislation  and  pol- 
icies and  that  recommendations  be  made  in 
the  full  knowledge  of  national  needs  and 
objectives. 

Therefore,  I  am  creating  by  Executive 
order  a  temporary  Water  Resources  Policy 
Commission  of  seven  members  to  study  and 
to  make  recommendations  to  me  on  the  pol- 


icies which  should  be  followed  by  the  Fed- 
eral Government  in  fulfilling  its  proper 
responsibilities  for  the  development,  conser- 
vation and  use  of  the  Nation's  water 
resources. 

I  am  asking  you  to  serve  as  chairman  of 
this  Commission.  Because  of  the  need  for 
early  action  in  the  field  of  water  resources 
development,  I  am  requesting  the  Commis- 
sion to  submit  its  final  report  to  me  not  later 
than  December  i,  1950. 

In  asking  you  and  your  fellow  members 
of  the  Commission  to  undertake  this  highly 
diflScult  assignment,  I  cannot  stress  its  im- 
portance too  gready. 

The  Federal  Government  already  has  a 
substantial  investment  in  existing  water  re- 
sources improvements;  in  recent  years  we 
have  been  adding  to  this  investment  at  a  rate 
of  more  than  $1  billion  annually.  These 
facts  alone  make  it  imperative  that  indi- 
vidual projects  be  properly  related  to  the 
total  water  resources  program,  that  they  be 
undertaken  in  logical  and  orderly  sequence 
and  that  they  be  scheduled  to  conform  to 
fiscal  and  other  national  considerations.  It 
is  even  more  important,  however,  that  the 
policies  underlying  these  programs  be 
soundly  conceived  in  terms  of  national  needs 
and  objectives  and  that  they  are  adopted 
in  the  light  of  our  goal  of  a  stable  and  ex- 
panding national  economy. 

While  the  number  of  individual  issues  in 
the  water  resources  field  is  large,  I  hope  that 
the  Commission  will  devote  its  attention  to 
major  areas  of  immediate  importance  and 
to  those  special  aspects  of  resource  develop- 
ment programs  which  have  a  major  im- 
mediate effect  on  the  well-being  and  proper 
functioning  of  the  Nation's  economy. 

The    Executive    order    establishing    the 


41-355—65- 


[i]    Jan.  3 


Public  Papers  of  the  Presidents 


Water  Resources  Policy  Commission  states 
that  the  Commission  shall  give  consideration 
in  particular  to  (a)  the  extent  and  character 
of  Federal  Government  participation  in 
major  water  resources  programs,  (b)  an 
appraisal  of  the  priority  of  water  resources 
programs  from  the  standpoint  of  economic 
and  social  need,  (c)  criteria  and  standards 
for  evaluating  the  feasibility  of  such  projects, 
and  (d)  desirable  legislation  or  changes  in 
existing  legislation. 

These  all  represent  areas  in  which  there 
is  pressing  need  for  clarification  of  our  na- 
tional policies  and  responsibilities. 

In  requesting  the  Commission  to  under- 
take this  highly  difficult  and  important  as- 
signment, I  recognize  that  it  will  not  be  pos- 
sible to  formulate  recommendations  on  all  of 
the  current  issues  before  us  in  time  for  con- 
sideration in  the  forthcoming  session  of  the 
Congress;  however,  much  basic  work  has 
already  been  done  within  the  Government 
and  elsewhere  with  respect  to  many  issues 
involved  in  our  water  resources  program.  It 
is  my  hope,  therefore,  that  it  will  be  possible 
for  the  Commission  to  submit  interim  recom- 
mendations to  me  on  some  of  the  more  ur- 
gent issues  which  have  been  raised  in  order 
that  specific  proposals  can  be  submitted  to 
the  Congress  in  time  for  action  this  year. 

As  you  know,  the  Commission  on  the  Or- 
ganization of  the  Executive  Branch  of  the 
Government  has  made  a  detailed  and  com- 
prehensive study  of  the  organizational  is- 
sues involved  in  the  water  resources  field. 


The  proper  allocation  of  functions  among 
agencies,  the  means  for  coordinating  their 
efforts  and  the  merits  of  various  alterna- 
tives for  coordination  of  river  basin  develop- 
ment programs  are  now  under  active  con- 
sideration in  the  Executive  Branch.  I  have 
already  made  certain  recommendations  to 
the  Congress  in  these  areas  and  expect  to 
transmit  others  during  the  coming  months. 
While  problems  of  organization  are  closely 
related  to  the  development  of  consistent  poli- 
cies in  the  field  of  water  resources,  I  am  re- 
questing your  Commission  to  confine  its 
recommendations  to  the  questions  of  policy 
set  forth  in  the  Executive  order  together  with 
related  legislation. 

Very  sincerely  yours, 

Harry  S.  Truman 

[Honorable  Morris  L.  Cooke,  St.  Georges  Road, 
Mt.  Airy  P.O.,  Philadelphia  19,  Pennsylvania.] 

note:  The  President's  Water  Resources  Policy  Com- 
mission was  established  by  Executive  Order  10095 
of  January  3,  1950  (3  CFR,  1 949-1 953  Comp.,  p. 
291). 

On  the  same  day  the  President  appointed  the  fol- 
lowing members:  Morris  L.  Cooke,  engineer,  Phila- 
delphia, Pa.,  chairman;  R.  R.  Renne,  president, 
Montana  State  College;  Lewis  W.  Jones,  president. 
University  of  Arkansas;  Gilbert  White,  president, 
Haverford  College;  Samuel  B.  Morris,  Department 
of  Water  and  Power,  Los  Angeles,  Calif.;  Paul  S. 
Burgess,  dean.  College  of  Agriculture,  University  of 
Arizona;  and  Leland  D.  Olds,  New  York  City. 

The  Commission's  report  was  contained  in  three 
volumes.  Volume  i,  entided  "A  Water  Policy  for 
the  American  People  (General  Report),"  was  sub- 
mitted to  the  President  on  December  11,  1950  (see 
Item  306). 


2    Annual  Message  to  the  Congress  on  the  State  of  the  Union. 
]anuary  4,  1950 

[  As  delivered  in  person  before  a  joint  session  ] 


Mr.  President,  Mr.  Speaker,  Members  of  the 
Congress: 

A  year  ago  I  reported  to  this  Congress  that 
the  state  of  the  Union  was  good.    I  am 


happy  to  be  able  to  report  to  you  today  that 
the  state  of  the  Union  continues  to  be  good. 
Our  Republic  continues  to  increase  in  the 
enjoyment  of  freedom  within  its  borders, 


Harry  S.  Truman,  ig^o 


Jan.  4    [2] 


and  to  offer  strength  and  encouragement  to 
all  those  who  love  freedom  throughout  the 
world. 

During  the  past  year  we  have  made  nota- 
ble progress  in  strengthening  the  foundations 
of  peace  and  freedom,  abroad  and  at  home. 

We  have  taken  important  steps  in  secur- 
ing the  North  Atlantic  community  against 
aggression.  We  have  continued  our  suc- 
cessful support  of  European  recovery.  We 
have  returned  to  our  established  policy  of 
expanding  international  trade  through  re- 
ciprocal agreement.  We  have  strengthened 
our  support  of  the  United  Nations. 

While  great  problems  still  confront  us, 
the  greatest  danger  has  receded — ^the  pos- 
sibility which  faced  us  3  years  ago  that  most 
of  Europe  and  the  Mediterranean  area  might 
collapse  under  totalitarian  pressure.  Today, 
the  free  peoples  of  the  world  have  new 
vigor  and  new  hope  for  the  cause  of  peace. 

In  our  domestic  affairs,  we  have  made 
notable  advances  toward  broader  oppor- 
tunity and  a  better  life  for  all  our  citizens. 

We  have  met  and  reversed  the  first  sig- 
nificant downturn  in  economic  activity  since 
the  war.  In  accomplishing  this,  Govern- 
ment programs  for  maintaining  employment 
and  purchasing  power  have  been  of  tremen- 
dous benefit.  As  the  result  of  these  pro- 
grams, and  the  wisdom  and  good  judgment 
of  our  businessmen  and  workers,  major  re- 
adjustments have  been  made  without  wide- 
spread suffering. 

During  the  past  year,  we  have  also  made 
a  good  start  in  providing  housing  for  low- 
income  groups;  we  have  raised  minimum 
wages;  we  have  gone  forward  with  the  de- 
velopment of  our  natural  resources;  we  have 
given  a  greater  assurance  of  stability  to  the 
farmer;  and  we  have  improved  the  organi- 
zation and  eflSciency  of  our  Government. 

Today,  by  the  grace  of  God,  we  stand  a 
free  and  prosperous  nation  with  greater  pos- 
sibilities for  the  future  than  any  people  ever 


had  before  in  the  history  of  the  world. 

We  are  now,  in  this  year  of  1950,  nearing 
the  midpoint  of  the  20th  century. 

The  first  half  of  this  century  will  be 
known  as  the  most  turbulent  and  eventful 
period  in  recorded  history.  The  swift  pace 
of  events  promises  to  make  the  next  50  years 
decisive  in  the  history  of  man  on  this  planet. 

The  scientific  and  industrial  revolution 
which  began  two  centuries  ago  has,  in  the 
last  50  years,  caught  up  the  peoples  of  the 
globe  in  a  common  destiny.  Two  world- 
shattering  wars  have  proved  that  no  corner 
of  the  earth  can  be  isolated  from  the  affairs 
of  mankind. 

The  human  race  has  reached  a  turning 
point.  Man  has  opened  the  secrets  of  nature 
and  mastered  new  powers.  If  he  uses  them 
wisely,  he  can  reach  new  heights  of  civiliza- 
tion. If  he  uses  them  foolishly,  they  may 
destroy  him. 

Man  must  create  the  moral  and  legal 
framework  for  the  world  which  will  insure 
that  his  new  powers  are  used  for  good  and 
not  for  evil.  In  shaping  the  outcome,  the 
people  of  the  United  States  will  play  a 
leading  role. 

Among  all  the  great  changes  that  have 
occurred  in  the  last  50  years,  none  is  more 
important  than  the  change  in  the  position 
of  the  United  States  in  world  affairs.  Fifty 
years  ago  we  were  a  country  devoted  largely 
to  our  own  internal  affairs.  Our  industry 
was  growing,  and  we  had  new  interests  in 
the  Far  East  and  in  the  Caribbean,  but  we 
were  primarily  concerned  with  the  develop- 
ment of  vast  areas  of  our  own  continental 
territory. 

Today,  our  population  has  doubled.  Our 
national  production  has  risen  from  about  $50 
billion,  in  terms  of  today's  prices,  to  the 
staggering  figure  of  $255  billion  a  year.  We 
have  a  more  productive  economic  system  and 
a  greater  industrial  potential  than  any  other 
nation  on  the  globe.    Our  standard  of  living 


[2]    Jan.  4 


Public  Papers  of  the  Presidents 


is  an  inspiration  for  all  other  peoples.  Even 
the  slightest  changes  in  our  economic  and 
social  life  have  their  effect  on  other  countries 
all  around  the  world. 

Our  tremendous  strength  has  brought  with 
it  tremendous  responsibilities.  We  have 
moved  from  the  outer  edge  to  the  center  of 
world  affairs.  Other  nations  look  to  us  for 
a  wise  exercise  of  our  economic  and  mili- 
tary strength,  and  for  vigorous  support  of  the 
ideals  of  representative  government  and  a 
free  society.    We  will  not  fail  them. 

Our  objective  in  the  world  is  peace.  Our 
country  has  joined  with  others  in  the  task  of 
achieving  peace.  We  know  now  that  this  is 
not  an  easy  task,  or  a  short  one.  But  we  are 
determined  to  see  it  through.  Both  of  our 
great  political  parties  are  committed  to  work- 
ing together — ^and  I  am  sure  they  will  con- 
tinue to  work  together — to  achieve  this  end. 
We  are  prepared  to  devote  our  energy  and 
our  resources  to  this  task,  because  we  know 
that  our  own  security  and  the  future  of  man- 
kind are  at  stake. 

Right  here,  I  want  to  say  that  no  one 
appreciates  more  than  I  the  bipartisan  co- 
operation in  foreign  affairs  which  has  been 
enjoyed  by  this  administration. 

Our  success  in  working  with  other  na- 
tions to  achieve  peace  depends  largely  on 
what  we  do  at  home.  We  must  preserve 
our  national  strength.  Strength  is  not  sim- 
ply a  matter  of  arms  and  force.  It  is  a  matter 
of  economic  growth,  and  social  health,  and 
vigorous  institutions,  public  and  private.  We 
can  achieve  peace  only  if  we  maintain  our 
productive  energy,  our  democratic  institu- 
tions, and  our  firm  belief  in  individual  free- 
dom. 

Our  surest  guide  in  the  days  that  lie  ahead 
will  be  the  spirit  in  which  this  great  Re- 
public was  founded.  We  must  make  our 
decisions  in  the  conviction  that  all  men 
are  created  equal,  that  they  are  equally  en- 
tided  to  life,  liberty,  and   the  pursuit  of 


happiness,  and  that  the  duty  of  government 
is  to  serve  these  ends. 

This  country  of  ours  has  experienced  many 
blessings,  but  none  greater  than  its  dedica- 
tion to  these  principles.  At  every  point  in 
our  history,  these  ideals  have  served  to  cor- 
rect our  failures  and  shortcomings,  to  spur 
us  on  to  greater  efforts,  and  to  keep  clearly 
before  us  the  primary  purpose  of  our  exist- 
ence as  a  nation.  They  have  enshrined  for  us, 
a  principle  of  government,  the  moral  impera- 
tive to  do  justice,  and  the  divine  command  to 
men  to  love  one  another. 

These  principles  give  meaning  to  all  that 
we  do. 

In  foreign  policy,  they  mean  that  we  can 
never  be  tolerant  of  oppression  or  tyranny. 
They  mean  that  we  must  throw  our  weight 
on  the  side  of  greater  freedom  and  a  better 
life  for  all  peoples.  These  principles  con- 
firm us  in  carrying  out  the  specific  programs 
for  peace  which  we  have  already  begun. 

We  shall  continue  to  give  our  whole- 
hearted support  to  the  United  Nations.  We 
believe  that  this  organization  can  ultimately 
provide  the  framework  of  international  law 
and  morality  without  which  mankind  can- 
not survive.  It  has  already  set  up  new  stand- 
ards for  the  conduct  of  nations  in  the  Decla- 
ration of  Human  Rights  and  the  Conven- 
tion on  Genocide.  It  is  moving  ahead  to 
give  meaning  to  the  concept  of  world 
brotherhood  through  a  wide  variety  of  cul- 
tural, economic,  and  technical  activities. 

The  events  of  the  past  year  again  showed 
the  value  of  the  United  Nations  in  bringing 
about  the  peaceful  adjustment  of  tense  inter- 
national controversies.  In  Indonesia  and  in 
Palestine  the  efforts  of  the  United  Nations 
have  put  a  stop  to  bloodshed  and  paved  the 
way  to  peaceful  settlements. 

We  are  working  toward  the  time  when 
the  United  Nations  will  control  weapons  of 
mass  destruction  and  will  have  the  forces  to 
preserve  international  law  and  order.   While 


Harry  S.  Truman,  ig^o 


Jan.  4    [2] 


the  world  remains  unsettled,  however,  and 
as  long  as  our  own  security  and  the  security 
of  the  free  world  require,  we  will  maintain 
a  strong  and  well-balanced  defense  organi- 
zation. The  Selective  Service  System  is  an 
essential  part  of  our  defense  plans,  and  it 
must  be  continued. 

Under  the  principles  of  the  United  Nations 
Charter  we  must  continue  to  share  in  the 
common  defense  of  free  nations  against  ag- 
gression. At  the  last  session  this  Congress 
laid  the  basis  for  this  joint  effort.  We  now 
must  put  into  effect  the  common  defense 
plans  that  are  being  worked  out. 

We  shall  continue  our  efforts  for  world 
economic  recovery,  because  world  prosper- 
ity is  the  only  sure  foundation  of  a  perma- 
nent peace. 

As  an  immediate  means  to  this  end  we 
must  continue  our  support  of  the  European 
recovery  program.  This  program  has 
achieved  great  success  in  the  first  2  years  of 
its  operation,  but  it  has  not  yet  been  com- 
pleted. If  we  were  to  stop  this  program 
now,  or  cripple  it,  just  because  it  is  succeed- 
ing, we  should  be  doing  exactly  what  the 
enemies  of  democracy  want  us  to  do.  We 
should  be  just  as  foolish  as  a  man  who,  for 
reasons  of  false  economy,  failed  to  put  a  roof 
on  his  house  after  building  the  foundation 
and  the  walls. 

World  prosperity  also  requires  that  we  do 
all  we  can  to  expand  world  trade.  As  a 
major  step  in  this  direction  we  should 
prompdy  join  the  International  Trade  Or- 
ganization. The  purpose  of  this  organiza- 
tion, which  the  United  States  has  been  fore- 
most in  creating,  is  to  establish  a  code  of  fair 
practice,  and  an  international  authority  for 
adjusting  differences  in  international  com- 
mercial relations.  It  is  an  effort  to  prevent 
the  kind  of  anarchy  and  irresponsibility  in 
world  trade  which  did  so  much  to  bring 
about  the  world  depression  of  the  1930's. 

An  expanding  world  economy  requires  the 


improvement  of  living  standards  and  the 
development  of  resources  in  areas  where 
human  poverty  and  misery  now  prevail. 
Without  such  improvement  the  recovery  of 
Europe  and  the  future  of  our  own  economy 
will  not  be  secure.  I  urge  that  the  Congress 
adopt  the  legislation  now  before  it  to  provide 
for  increasing  the  flow  of  technical  assistance 
and  capital  investment  in  underdeveloped 
regions. 

It  is  more  essential  now  than  ever,  if  the 
ideals  of  freedom  and  representative  gov- 
ernment are  to  prevail  in  these  areas,  and 
particularly  in  the  Far  East,  that  their  peo- 
ples experience,  in  their  own  lives,  the  bene- 
fits of  scientific  and  economic  advances. 
This  program  will  require  the  movement  of 
large  amounts  of  capital  from  the  industrial 
nations,  and  particularly  from  the  United 
States,  to  productive  uses  in  the  underde- 
veloped areas  of  the  world.  Recent  world 
events  make  prompt  action  imperative. 

This  program  is  in  the  interest  of  all  peo- 
ples— ^and  has  nothing  in  common  with 
either  the  old  imperialism  of  the  last  century 
or  the  new  imperialism  of  the  Communists. 

Our  aim  for  a  peaceful,  democratic  world 
of  free  peoples  will  be  achieved  in  the  long 
run,  not  by  force  of  arms,  but  by  an  appeal 
to  the  minds  and  hearts  of  men.  If  the 
peace  policy  of  the  democratic  nations  is  to 
be  successful,  they  must  demonstrate  that 
the  benefits  of  their  way  of  life  can  be  in- 
creased and  extended  to  all  nations  and  all 
races. 

In  the  world  today  we  are  confronted  with 
the  danger  that  the  rising  demand  of  people 
everywhere  for  freedom  and  a  better  life 
may  be  corrupted  and  betrayed  by  the  false 
promises  of  communism.  In  its  ruthless 
struggle  for  power,  communism  seizes  upon 
our  imperfections,  and  takes  advantage  of 
the  delays  and  setbacks  which  the  democratic 
nations  experience  in  their  effort  to  secure 
a  better  life  for  their  citizens.    This  chal- 


[2]    Jan.  4 


Public  Papers  of  the  Presidents 


lenge  to  us  is  more  than  a  military  challenge. 
It  is  a  challenge  to  the  honesty  of  our  profes- 
sion of  the  democratic  faith;  it  is  a  challenge 
to  the  efficiency  and  stability  of  our  economic 
system;  it  is  a  challenge  to  the  willingness 
to  work  with  other  peoples  for  world  peace 
and  for  world  prosperity. 

For  my  part  I  welcome  that  challenge.  I 
believe  that  our  country,  at  this  crucial  point 
in  world  history,  will  meet  that  challenge 
successfully.  I  believe  that,  in  cooperation 
with  the  other  free  nations  of  the  world,  we 
shall  extend  the  full  benefits  of  the  demo- 
cratic way  of  life  to  millions  who  do  not  now 
enjoy  them,  and  preserve  mankind  from 
dictatorship  and  tyranny. 

I  believe  that  we  shall  succeed  in  our 
struggle  for  this  peace,  because  I  have  seen 
the  success  we  have  had  in  our  own  coun- 
try in  following  the  principles  of  freedom. 
Over  the  last  50  years,  the  ideals  of  liberty 
and  equal  opportunity  to  which  this  Na- 
tion is  dedicated  have  been  increasingly 
realized  in  the  lives  of  our  people. 

The  ideal  of  equal  opportunity  no  longer 
means  simply  the  opportunity  which  a  man 
has  to  advance  beyond  his  fellows.  Some  of 
our  citizens  do  achieve  greater  success  than 
others  as  a  reward  for  individual  merit  and 
effort,  and  this  is  as  it  should  be.  At  the 
same  time  our  country  must  be  more  than 
a  land  of  opportunity  for  a  select  few.  It 
must  be  a  land  of  opportunity  for  all  of  us. 
In  such  a  land  we  can  grow  and  prosper  to- 
gether. 

The  simple  truth  that  we  can  all  go  for- 
ward together  is  often  questioned  by  selfish 
or  shortsighted  persons.  It  is  strange  that 
this  is  so,  for  this  proposition  is  so  clearly 
demonstrated  by  our  national  history.  Dur- 
ing the  last  50  years,  for  example,  our  Na- 
tion has  grown  enormously  in  material  well- 
being.  This  growth  has  come  about,  not  by 
concentrating  the  benefits  of  our  progress  in 
the  hands  of  a  few,  but  by  increasing  the 


wealth  of  the  great  body  of  our  Nation  and 
our  citizens. 

In  the  last  50  years  the  income  of  the  aver- 
age family  has  increased  so  greatly  that  its 
buying  power  has  doubled.  The  average 
hours  of  work  have  declined  from  60  to  40 
a  week,  the  whole  hourly  production  of  the 
average  worker  has  tripled.  Average  wages, 
allowing  for  price  changes,  have  increased 
from  about  45  cents  an  hour  to  $1.40  an  hour. 

We  have  accomplished  what  to  earlier  ages 
of  mankind  would  have  been  a  miracle — ^we 
work  shorter  hours,  we  produce  more,  and 
we  live  better. 

Increasing  freedom  from  poverty  and 
drudgery  has  given  a  fuller  meaning  to 
American  life.  Our  people  are  better  edu- 
cated; we  have  more  opportunities  for  travel 
and  recreation  and  enjoyment  of  the  arts. 
We  enjoy  more  personal  liberty  in  the 
United  States  today  than  ever  before. 

If  we  can  continue  in  the  spirit  of  co- 
operative adventure  which  has  marked  the 
recent  years  of  our  progress,  we  can  expect 
further  scientific  advances,  further  in- 
creases in  our  standard  of  living,  and  a  still 
wider  enjoyment  of  democratic  freedom. 

No  one,  of  course,  can  foretell  the  future 
exactly.  However,  if  we  assume  that  we 
shall  grow  as  fast  in  the  future  as  we  have 
grown  in  the  past,  we  can  get  a  good  idea  of 
how  much  our  country  should  grow  in  the 
next  50  years. 

At  present  our  total  national  production 
is  $255  billion  a  year.  Our  working  popula- 
tion and  our  output  per  worker  are  increase 
ing.  If  our  productive  power  continues  to 
increase  at  the  same  rate  as  it  has  increased 
over  the  past  50  years,  our  total  national 
production  50  years  from  now  will  be  nearly 
four  times  as  much  as  it  is  today.  Allowing 
for  the  expected  growth  in  population,  this 
would  mean  that  the  real  income  of  the  aver- 
age family  in  the  year  2000  A.D.  would  be 
about  three  times  what  it  is  today. 


Harry  S.  Truman,  ig^o 


Jan.  4    [2] 


These  are  estimates  of  what  we  can  do  in 
the  future,  but  we  can  reach  these  heights 
only  if  we  follow  the  right  policies.  We 
have  learned  by  bitter  experience  that  prog- 
ress is  not  automatic — that  wrong  policies 
lead  to  depression  and  disaster.  We  cannot 
achieve  these  gains  unless  we  have  a  stable 
economy  and  avoid  the  catastrophes  of  boom 
and  bust  that  have  set  us  back  in  the  past. 

These  gains  cannot  be  achieved  unless  our 
businessmen  maintain  their  spirit  of  initiative 
and  enterprise  and  operate  in  a  competitive 
economy.  They  cannot  be  achieved  unless 
our  workingmen  and  women  and  their 
unions  help  to  increase  productivity  and  ob- 
tain for  labor  a  fair  share  of  the  benefits  of 
our  economic  system.  They  cannot  be 
achieved  unless  we  have  a  stable  and  pros- 
perous agriculture.  They  cannot  be  achieved 
unless  we  conserve  and  develop  our  natural 
resources  in  the  public  interest.  Our  system 
will  not  work  unless  our  people  are  healthy, 
well-educated,  and  confident  of  the  future. 
It  will  not  work  unless  all  citizens  can  par- 
ticipate fully  in  our  national  life. 

In  achieving  these  gains  the  Government 
has  a  special  responsibility  to  help  create 
and  maintain  the  conditions  which  will  per- 
mit the  growth  we  know  is  possible.  Fore- 
most among  these  conditions  is  the  need 
for  a  fair  distribution  of  our  increasing  pros- 
perity among  all  the  great  groups  of  our 
population  who  help  to  bring  it  about — 
labor,  business,  agriculture. 

Businessmen  must  continue  to  have  the 
incentives  necessary  for  investment  and  for 
the  development  of  new  lines  of  enterprise. 
In  the  future  growth  of  this  country,  lie 
possibilities  for  hundreds  of  thousands  of 
new  and  independent  businesses.  As  our 
national  production  increases,  as  it  doubles 
and  redoubles  in  the  next  50  years,  the  num- 
ber of  independent  and  competing  enter- 
prises should  also  increase.  If  the  number 
does  not  increase,  our  constantly  growing 


economy  will  fall  under  the  control  of  a  few 
dominant  economic  groups  whose  powers 
will  be  so  great  that  they  will  be  a  challenge 
to  democratic  institutions. 

To  avoid  this  danger,  we  must  curb 
monopoly  and  provide  aids  to  independent 
business  so  that  it  may  have  the  credit  and 
capital  to  compete  in  a  system  of  free  enter- 
prise. I  recommend  that  the  Congress  com- 
plete action  at  this  session  on  the  pending 
bill  to  close  the  loopholes  in  the  Clayton 
Act  which  now  permit  monopolistic  merg- 
ers. I  also  hope  before  this  session  is  over 
to  transmit  to  the  Congress  a  series  of  pro- 
posals to  strengthen  the  antimonopoly  laws, 
to  assist  small  business,  and  to  encourage  the 
growth  of  new  enterprises. 

In  the  case  of  labor,  free  collective  bar- 
gaining must  be  protected  and  encouraged. 
Collective  bargaining  is  not  only  a  funda- 
mental economic  freedom  for  labor.  It  is 
also  a  strengthening  and  stabilizing  influence 
for  our  whole  economy. 

The  Federal  statute  now  governing  labor 
relations  is  punitive  in  purpose  and  one- 
sided in  operation.  This  statute  is,  and  al- 
ways has  been,  inconsistent  with  the  practice 
of  true  and  effective  collective  bargaining. 
It  should  be  repealed  and  replaced  by  a  law 
that  is  fair  to  all  and  in  harmony  with  our 
democratic  ideals. 

A  full  understanding  of  the  problems  of 
modern  labor  relations  is  of  such  importance 
that  I  recommend  the  establishment  of  a 
labor  extension  service  to  encourage  educa- 
tional activities  in  this  field. 

Another  essential  for  our  continued 
growth  is  a  stable  and  prosperous  agricul- 
ture. For  many  years  we  have  been  build- 
ing a  program  to  give  the  farmer  a  reason- 
able measure  of  protection  against  the  special 
hazards  to  which  he  is  exposed.  That  pro- 
gram was  improved  at  the  last  session  of  the 
Congress.  However,  our  farm  legislation 
is  still  not  adequate. 


[2]    Jan.  4 


Public  Papers  of  the  Presidents 


Although  the  Congress  has  properly  de- 
clared as  a  matter  of  national  policy  that  safe- 
guards must  be  maintained  against  slumps 
in  farm  prices,  there  are  serious  shortcomings 
in  the  methods  now  available  for  carrying 
out  this  policy.  Mandatory  price  supports 
should  be  provided  for  the  commodities  not 
now  covered  which  are  major  sources  of 
farm  income. 

Moreover,  we  should  provide  a  method  of 
supporting  farm  income  at  fair  levels  which 
will,  at  the  same  time,  avoid  piling  up  un- 
manageable surpluses  and  allow  consumers 
to  obtain  the  full  benefit  of  our  abundant 
agricultural  production.  A  system  of  pro- 
duction payments  gives  the  greatest  promise 
of  accomplishing  this  purpose.  I  recom- 
mend that  the  use  of  such  a  system  be 
authorized. 

One  of  the  most  important  factors  in  our 
continued  grovnh  is  the  construction  of  more 
good,  up-to-date  housing.  In  a  country 
such  as  ours  there  is  no  reason  why  decent 
homes  should  not  be  within  the  reach  of 
all.  With  the  help  of  various  Government 
programs  we  have  made  great  progress  in 
the  last  few  years  in  increasing  the  number 
of  homes. 

Despite  this  increase,  there  is  still  an  acute 
shortage  of  housing  for  the  lower  and 
middle-income  groups,  especially  in  large 
metropolitan  areas.  We  have  laid  the 
groundwork  for  relieving  the  plight  of  lower- 
income  families  in  the  Housing  Act  of  1949. 
To  aid  the  middle-income  families,  I  recom- 
mend that  the  Congress  enact  new  legislation 
authorizing  a  vigorous  program  to  help  co- 
operatives and  other  nonprofit  groups  build 
housing  which  these  families  can  afford. 

Rent  control  has  done  a  great  deal  to 
prevent  the  housing  shortage  from  having 
had  worse  effects  during  this  postwar  period 
of  adjustment.  Rent  control  is  still  neces- 
sary to  prevent  widespread  hardship  and 
sharp  curtailment  of  the  buying  power  of 


millions  of  consumers  in  metropolitan  areas. 
I  recommend,  therefore,  that  rent  control  be 
continued  for  another  year. 

If  we  are  to  achieve  a  better  life  for  all, 
the  natural  resources  of  the  country  must  be 
regarded  as  a  public  trust.  We  must  use 
our  precious  assets  of  soil,  water,  and  forest, 
and  grassland  in  such  a  way  that  they  be- 
come constandy  more  productive  and  more 
valuable.  Government  investment  in  the 
conservation  and  development  of  our  re- 
sources is  necessary  to  the  future  economic 
expansion  of  the  country. 

We  need  to  enlarge  the  production  and 
transmission  of  public  power.  That  is  true 
not  only  in  those  regions  which  have  already 
received  great  benefits  from  Federal  power 
projects,  but  also  in  regions  such  as  New 
England  where  the  benefits  of  large-scale 
public  power  development  have  not  yet  been 
experienced. 

In  our  hydroelectric  and  irrigation  under- 
takings, as  well  as  in  our  other  resource  pro- 
grams, we  must  continue  policies  to  assure 
that  their  benefits  will  be  spread  among  the 
many  and  not  restricted  to  the  favored  few. 

Important  resource  legislation  which 
should  be  passed  at  this  session  includes  the 
authorization  of  the  St.  Lawrence  seaway 
and  power  project  and  the  establishment  of 
the  Columbia  Valley  Administration — ^the 
establishment  of  the  Columbia  Valley  Ad- 
ministration, I  don't  want  you  to  miss  that. 

Through  wise  Government  policies  and 
Government  expenditures  for  the  conserva- 
tion and  development  of  our  natural  re- 
sources, we  can  be  sure  of  transmitting  to 
our  children  and  our  children's  children  a 
country  far  richer  and  more  productive  than 
the  one  we  know  today. 

The  value  of  our  natural  resources  is  con- 
standy being  increased  by  the  progress  of 
science.  Research  is  finding  new  ways  of 
using  such  natural  assets  as  minerals,  sea 
water,  and  plant  life.    In  the  peaceful  de- 


8 


Harry  S.  Truman,  ig^o 


Jan.  4    [2] 


velopment  of  atomic  energy,  particularly,  we 
stand  on  the  threshold  of  new  wonders. 
The  first  experimental  machines  for  pro- 
ducing useful  power  from  atomic  energy  are 
now  under  construction.  We  have  made 
only  the  first  beginnings  in  this  field,  but  in 
the  perspective  of  history  they  may  loom 
larger  than  the  first  airplane,  or  even  the  first 
tools  that  started  man  on  the  road  to  civili- 
zation. 

To  take  full  advantage  of  the  increasing 
possibilities  of  nature  we  must  equip  our- 
selves with  increasing  knowledge.  Govern- 
ment has  a  responsibility  to  see  that  our 
country  maintains  its  position  in  the  advance 
of  science.  As  a  step  toward  this  end,  the 
Congress  should  complete  action  on  the 
measure  to  create  a  National  Science  Foim- 
dation. 

Another  duty  of  the  Government  is  to  pro- 
mote the  economic  security,  the  health,  and 
the  education  of  its  citizens.  By  so  doing, 
we  strengthen  both  our  economy  and  the 
structure  of  our  society.  In  a  nation  as  rich 
as  ours,  all  citizens  should  be  able  to  live  in 
decency  and  health. 

Our  Social  Security  System  should  be  de- 
veloped into  the  main  reliance  of  our  people 
for  basic  protection  against  the  economic 
hazards  of  old-age,  unemployment,  and  ill- 
ness. I  earnestly  hope  that  the  Congress 
will  complete  action  at  this  session  on  legis- 
lation to  increase  the  benefits  and  extend  the 
coverage  of  old-age  and  survivors'  insurance. 
The  widespread  movement  to  provide  pen- 
sions in  private  industry  dramatizes  the  need 
for  improvements  in  the  public  insurance 
system. 

I  also  urge  that  the  Congress  strengthen 
our  unemployment  compensation  law  to 
meet  present-day  needs  more  adequately. 
The  economic  downturn  of  the  past  year 
was  the  first  real  test  that  our  system  of  un- 
employment insurance  has  had  to  meet. 
That  test  has  proved  the  wisdom  of  the  sys- 


tem, but  it  has  also  made  strikingly  appar- 
ent the  need  for  improving  its  operation  and 
increasing  its  coverage  and  its  benefits. 

In  the  field  of  health  there  are  immense 
opportunities  to  extend  to  more  of  our  people 
the  benefits  of  the  amazing  advances  in  med- 
ical science.  We  have  made  a  good  begin- 
ning in  expanding  our  hospitals,  but  we  must 
also  go  on  to  remedy  the  shortages  of  doc- 
tors, nurses,  and  public  health  services,  and 
to  establish  a  system  of  medical  insurance 
which  will  enable  all  Americans  to  afford 
good  medical  care. 

We  must  take  immediate  steps  to 
strengthen  our  educational  system.  In  many 
parts  of  our  country,  young  people  are  being 
handicapped  for  life  because  of  a  poor  educa- 
tion. The  rapidly  increasing  number  of 
children  of  school  age,  coupled  with  the 
shortage  of  qualified  teachers,  makes  this 
problem  more  critical  each  year.  I  believe 
that  the  Congress  should  no  longer  delay  in 
providing  Federal  assistance  to  the  States  so 
that  they  can  maintain  adequate  schools. 

As  we  go  forward  in  achieving  greater 
economic  security  and  greater  opportunity 
for  all  our  people,  we  should  make  every  ef- 
fort to  extend  the  benefits  of  our  democratic 
institutions  to  every  citizen.  The  religious 
ideals  which  we  profess,  and  the  heritage  of 
freedom  which  we  have  received  from  the 
past,  clearly  place  that  duty  upon  us.  I  again 
urge  the  Congress  to  enact  the  civil  rights 
proposals  I  made  in  February  1948.  These 
proposals  are  for  the  enactment  of  Federal 
statutes  which  will  protect  all  our  people  in 
the  exercise  of  their  democratic  rights  and 
their  search  for  economic  opportunity,  grant 
statehood  to  Alaska  and  Hawaii,  provide 
a  greater  measure  of  self-government  for  our 
island  possessions,  and  accord  home  rule  to 
the  District  of  Columbia.  Some  of  those 
proposals  have  been  before  the  Congress  for 
a  long  time.  Those  who  oppose  them,  as 
well  as  those  who  favor  them,  should  recog- 


[2]    Jan.  4 


Public  Papers  of  the  Presidents 


nize  that  it  is  the  duty  of  the  elected  repre- 
sentatives of  the  people  to  let  these  proposals 
come  to  a  vote. 

Our  democratic  ideals,  as  vi^ell  as  our  best 
interests,  require  that  v^e  do  our  fair  share 
in  providing  homes  for  the  unfortunate  vic- 
tims of  v^ar  and  tyranny.  In  so  doing,  we 
shall  add  strength  to  our  democracy  through 
the  abilities  and  skills  v^hich  these  men  and 
women  will  bring  here.  I  urge  the  prompt 
enactment  by  the  Congress  of  the  legisla- 
tion now  before  it  to  extend  and  broaden  the 
existing  displaced  persons  law  and  remove  its 
discriminatory  features. 

The  measures  I  am  recommending  to 
the  Congress  concerning  both  our  foreign 
and  our  domestic  policies  represent  a  care- 
fully considered  program  to  meet  our  na- 
tional needs.  It  is  a  program  which  neces- 
sarily requires  large  expenditures  of  funds. 
More  than  70  percent  of  the  Government's 
expenditures  are  required  to  meet  the  costs 
of  past  wars  and  to  work  for  world  peace. 
This  is  the  dominant  factor  in  our  fiscal 
policy.  At  the  same  time,  the  Government 
must  make  substantial  expenditures  which 
are  necessary  to  the  growth  and  expansion 
of  the  domestic  economy. 

At  present,  largely  because  of  the  ill-con- 
sidered tax  reduction  of  the  8oth  Congress, 
the  Government  is  not  receiving  enough 
revenue  to  meet  its  necessary  expenditures. 

To  meet  this  situation,  I  am  proposing 
that  Federal  expenditures  be  held  to  the  low- 
est levels  consistent  with  our  international 
requirements  and  the  essential  needs  of 
economic  growth,  and  the  well-being  of  our 
people.  I  think  I  had  better  read  that  over; 
you  interrupted  me  in  the  middle. 

To  meet  this  situation,  I  am  proposing  that 
Federal  expenditures  be  held  to  the  lowest 
levels  consistent  with  our  international  re- 
quirements and  the  essential  needs  of  eco- 
nomic growth,  and  the  well-being  of  our 
people.    Don't  forget  that  last  phrase.    At 


the  same  time,  we  must  guard  against  the 
folly  of  attempting  budget  slashes  which 
would  impair  our  prospects  for  peace  or  crip- 
ple the  programs  essential  to  our  national 
strength. 

The  budget  recommendations  I  shall  short- 
ly transmit  to  the  Congress  show  that  we  can 
expect  a  substantial  improvement  in  our  fis- 
cal position  over  the  next  few  years,  as  the 
cost  of  some  of  our  extraordinary  postwar 
programs  declines,  and  as  the  Government 
revenue  rises  as  a  result  of  growth  in  em- 
ployment and  national  income.  To  fur- 
ther improve  our  fiscal  outlook,  we  should 
make  some  changes  in  our  tax  system  which 
will  reduce  present  inequities,  stimulate 
business  activity,  and  yield  a  moderate 
amount  of  additional  revenue.  I  expect  to 
transmit  specific  recommendations  to  the 
Congress  on  this  subject  at  a  very  early  date. 

The  fiscal  policy  I  am  recommending  is 
the  quickest  and  safest  way  of  achieving  a 
balanced  budget. 

As  we  move  forward  into  the  second  half 
of  the  20th  century,  we  must  always  bear  in 
mind  the  central  purpose  of  our  national  life. 
We  do  not  seek  material  prosperity  for  our- 
selves because  we  love  luxury;  we  do  not  aid 
other  nations  because  we  wish  to  increase 
our  power.  We  have  not  devised  programs 
for  the  security  and  well-being  of  our  people 
because  we  are  afraid  or  unwilling  to  take 
risks.  This  is  not  the  meaning  of  our  past 
history  or  our  present  course. 

We  work  for  a  better  life  for  all,  so  that  all 
men  may  put  to  good  use  the  great  gifts 
with  which  they  have  been  endowed  by  their 
Creator.  We  seek  to  establish  those  material 
conditions  of  life  in  which,  without  excep- 
tion, men  may  live  in  dignity,  perform  use- 
ful work,  serve  their  communities,  and  wor- 
ship God  as  they  see  fit. 

These  may  seem  simple  goals,  but  they 
are  not  little  ones.  They  are  worth  a  great 
deal  more  than  all  the  empires  and  conquests 


10 


Harry  S.  Truman,  igp 


Jan.  5    [3] 


of  history.  They  are  not  to  be  achieved  by 
military  aggression  or  political  fanaticism. 
They  are  to  be  achieved  by  humbler  means — 
by  hard  work,  by  a  spirit  of  self-restraint  in 
our  dealings  v^ith  one  another,  and  by  a  deep 
devotion  to  the  principles  of  justice  and 
equality. 

It  should  make  us  truly  thankful,  as  we 
look  back  to  the  beginnings  of  this  country, 
that  we  have  come  so  far  along  the  road  to 
a  better  life  for  all.  It  should  make  us  hum- 
ble to  think,  as  we  look  ahead,  how  much 


farther  we  have  to  go  to  accomplish,  at  home 
and  abroad,  the  objectives  that  were  set  out 
for  us  at  the  founding  of  this  great  Nation. 
As  we  approach  the  halfway  mark  of  the 
20th  century,  we  should  ask  for  continued 
strength  and  guidance  from  that  Almighty 
Power  who  has  placed  before  us  such  great 
opportunities  for  the  good  of  mankind  in 
the  years  to  come. 

note:  The  President  spoke  at  i  p.m.    The  address 
was  broadcast  over  radio  and  television. 


3    The  President's  News  Conference  of 
January  5,  1950 


THE  PRESIDENT,  [i.]  I  have  a  statement  I 
want  to  read  to  you.  It  will  be  handed  to 
you  in  mimeographed  form  after  the  press 
conference. 

[Reading]  "The  United  States  Govern- 
ment has  always  stood  for  good  faith  in  in- 
ternational relations.  Traditional  United 
States  policy  toward  China,  as  exemplified 
in  the  open-door  policy,  called  for  interna- 
tional respect  for  the  territorial  integrity  of 
China.  This  principle  was  recendy  reaf- 
firmed in  the  United  Nations  General  As- 
sembly Resolution  of  December  8,  1949, 
which,  in  part,  calls  on  all  states,  and  I  quote: 

"  To  refrain  from  (a)  seeking  to  acquire 
spheres  of  influence  or  to  create  foreign  con- 
trolled regimes  within  the  territory  of  China; 
(b)  seeking  to  obtain  special  rights  or  priv- 
ileges within  the  territory  of  China.'" 

That  is  the  end  of  the  quotation  from  the 
United  Nations  Resolution. 

[Continuing  reading]  "A  specific  applica- 
tion of  the  foregoing  principles  is  seen  in 
the  present  situation  with  respect  to  For- 
mosa. In  the  Joint  Declaration  at  Cairo 
on  December  i,  1943,  the  President  of  the 
United  States,  the  British  Prime  Minister, 
and  the  President  of  China  stated  that  it  was 


their  purpose  that  territories  Japan  had 
stolen  from  China,  such  as  Formosa,  should 
be  restored  to  the  Republic  of  China.  The 
United  States  was  a  signatory  to  the  Potsdam 
Declaration  of  July  26,  1945,  which  declared 
that  the  terms  of  the  Cairo  Declaration 
should  be  carried  out.  The  provisions  of 
this  declaration  were  accepted  by  Japan  at 
the  time  of  its  surrender.  In  keeping  with 
these  declarations,  Formosa  was  surrendered 
to  Generalissimo  Chiang  Kai-shek,  and  for 
the  past  4  years  the  United  States  and  other 
Allied  Powers  have  accepted  the  exercise  of 
Chinese  authority  over  the  island. 

"The  United  States  has  no  predatory  de- 
signs on  Formosa,  or  on  any  other  Chinese 
territory.  The  United  States  has  no  desire 
to  obtain  special  rights  or  privileges,  or  to 
establish  military  bases  on  Formosa  at  this 
time.  Nor  does  it  have  any  intention  of 
utilizing  its  Armed  Forces  to  interfere  in 
the  present  situation.  The  United  States 
Government  will  not  pursue  a  course  which 
will  lead  to  involvement  in  the  civil  conflict 
in  China. 

"Similarly,  the  United  States  Govern- 
ment will  not  provide  military  aid  or  advice 
to  Chinese  forces  on  Formosa.    In  the  view 


II 


[S]    Jan.  5 


Public  Papers  of  the  Presidents 


of  the  United  States  Government,  the  re- 
sources on  Formosa  are  adequate  to  enable 
them  to  obtain  the  items  which  they  might 
consider  necessary  for  the  defense  of  the 
island.  The  United  States  Government  pro- 
poses to  continue  under  existing  legislative 
authority  the  present  EGA  program  of  eco- 
nomic assistance." 

At  2:30  this  afternoon  Dean  Acheson  v^ill 
hold  a  press  conference  and  further  elab- 
orate on  the  details  with  reference  to  this 
statement  which  I  have  just  issued  on  the 
policy  of  the  United  States  Government 
toward  China  and  Formosa.^ 

I  do  not  want  to  answer  any  questions  on 
the  subject  now,  so  save  your  questions  for 
this  afternoon. 

Are  there  any  other  questions?  ILaughter^ 

[2.]  Q.  Mr.  President,  I  have  a  couple  of 
atomic  energy  questions. 

THE  PRESIDENT.   ShoOt. 

Q.  Since  you  were  the  source  of  informa- 
tion on  the  first  Russian  atomic  bomb  ex- 
plosion, can  you  comment  on  a  London  re- 
port that  said  Russia  is  going  to  explode 
another  bomb  next  Saturday? 

THE  PRESIDENT.  I  had  no  advance  infor- 
mation on  the  explosion  of  the  other  Russian 
bomb.  Naturally,  I  have  no  advance  in- 
formation on  this  one.^ 

[3.]  Q.  Mr.  President,  were  you  person- 
ally sufEciendy  acquainted  with  Sir  Willmott 
Lewis  ^  that  you  would  care  to  comment  on 
his  passing? 

THE  PRESIDENT.  I  was  just  casually  ac- 
quainted with  him,  but  I  knew  him  by  repu- 
tation, and  of  course  I  was  sincerely  sorry 
to  hear  of  his  passing.    I  didn't  know  about 


*  For  the  remarks  of  the  Secretary  o£  State  at  his 
press  conference  on  January  5,  see  the  Department  of 
State  Bulletin  (vol.  22,  p.  79). 

^For  the  statement  by  the  President  announcing 
the  first  atomic  explosion  in  the  Soviet  Union,  see 
1949  volume,  this  series,  Item  216. 

^  Sir  Willmott  H.  Lewis,  Washington  correspond- 
ent emeritus  of  the  London  Times. 


it  until  I  saw  it  in  the  paper,  I  think  this 
morning. 

[4.]  Q.  Mr.  President,  the  St.  Louis 
Citizens  Fuel  Committee  and  the  St.  Louis 
Retail  Coal  Association  both  wired  you,  ei- 
ther last  night  or  today,  saying  that  while 
temperatures  were  dropping  out  there  their 
fuel  supply  was  running  low,  and  urged 
that  for  public  health  and  safety  you  secure 
full  operation  of  the  coal  mines  without 
delay.    Have  you  seen  those  telegrams? 

THE  PRESIDENT.  No,  I  havcn't  seen  them. 

Q.  Any  comment? 

THE  PRESIDENT.  I  think  possibly  they  were 
sent  to  the  press  and  not  to  me,  so  I  can't  an- 
swer them  to  the  press.  However,  when  I 
get  them,  I  will  see  if  they  are  entided  to  an 
answer,  and  if  they  are  they  will  get  an 
answer. 

[5.]  Q.  Mr.  President,  when  you  re- 
ferred to  public  power  development  in  New 
England  in  your  message,^  were  you  refer- 
ring to  the  Passamaquoddy  tidal  power  or 
were  you  referring  to  river  power? 

THE  PRESIDENT.   Both. 

Q.  On  that  same  line,  how  would  you 
favor  similar  TVA  development  on  the 
Cumberland  River  in  Tennessee? 

THE  PRESIDENT.  I  am  uot  familiar  with 
that  situation,  and  I  can't  answer  that  ques- 
tion. 

[6.]  Q.  Mr.  President,  I  am  in  a  high 
state  of  confusion  concerning  the — on  that 
perennial  St.  Lawrence  power  and  naviga- 
tion project. 

THE  PRESIDENT.  What  causes  the  confu- 
sion? 

Q.  There  have  been  a  lot  of  maneuvers. 

THE  PRESIDENT.  What  do  you  mean? 

Q.  I  don't  know  whether  I  can  clear  them 
up  in  this  rapid  fire  question  and  answer, 
but  I  would  like  to  explain  a  little  bit  about 
it  to  you,  if  you  will  permit  me? 


*  See  Item  2. 


12 


Harry  S.  Truman,  ig^o 


Jan.  5    [3] 


THE  PRESIDENT.  Surc,  go  right  ahead. 

Q.  You  know  some  months  ago  the  On- 
tario and  New  York  power  people  got  to- 
gether on  a  proposal  to  develop  power  sepa- 
rately from  the  navigation,  and  you  took  the 
stand  that  it  was  all  or  nothing. 

THE  PRESIDENT.  That  is  correct,  and  I  still 
am  of  that  same  frame  of  mind;  all  or 
nothing. 

Q.  And  that  seemed  effectively  to  put  it 
on  ice  for  a  while,  but  while  you  were  away, 
I  think,  they  reactivated  it  over  in  the  Federal 
Power  Commission. 

THE  PRESIDENT.  Well,  I  will  never  agree  to 
the  development  of  the  St.  Lawrence  power 
project  until  the  St.  Lawrence  Seaway  proj- 
ect is  attached  to  it.  They  go  together.  It 
should  be  developed  together.  That  is  for 
the  interests  of  the  whole  United  States, 
when  it  is  developed  that  way.  The  other 
development  is  just  for  the  interests  of  power 
in  Ontario  and  the  State  of  New  York.  And 
I  want  the  whole  country  to  have  some  good 
out  of  that  development  if  we  are  going  to 
pay  for  it. 

[7.]  Q.  Mr.  President,  for  those  of  us 
who  have  been  waiting  for  a  full  National 
Labor  Relations  Board,  have  you  any  news 
today? 

THE  PRESIDENT.  No,  I  havcn't. 

Q.  Have  you  any  nominations  at  all  that 
you  might  tell  us? 

THE  PRESIDENT.  A  whole  batch  of  recess 
appointments  today  at  noon.° 

Q.  Recess  appointments? 

THE  PRESIDENT.  Appointments  that  were 
made  during  recess.  I  am  sending  them 
up.    We  will  give  you  a  list  of  them. 

Q.  Any  interesting  ones  that  might  make 
better  news  ?     [Laughter] 

THE  PRESIDENT.  No.   You  havc  them  all. 


"For  the  list  of  the  President's  nominations  re- 
ceived by  the  Senate  on  January  5,  sec  the  Con- 
gressional Record  (vol.  96,  p.  106). 


[8.]  Q.  Mr.  President,  there  are  reports 
from  out  in  Missouri  as  to  whether  you 
have  endorsed  the  candidacy  of  State  Sen- 
ator Emery  Allison  for  United  States  Sena- 
tor? 

THE  PRESIDENT.  I  kuow  Emery  Allison 
very  well.  I  like  him,  and  I  think  he  would 
make  a  wonderful  United  States  Senator 
from  Missouri.  When  the  primary  comes 
around,  I  shall  vote  for  him. 

Q.  Where  is  he  from,  Mr.  President? 

THE  PRESIDENT.  Where  is  he  from?  RoUa, 
Mo.  He  is  the  ranking  Democratic  member 
of  the  State  Senate  of  Missouri. 

Q.  How  do  you  spell  his  name,  sir? 

THE  PRESIDENT.  A-l-l-i-s-o-u — but  I  am  not 
sure  whether  it  has  two  I's  or  not.  E-m-e-r-y 
A-1-l-i-s-o-n.  Whether  it  has  two  I's  or  not, 
I  can't  remember. 

[9.]  Q.  There  is  another  power  ques- 
tion I  would  like  to  ask  you  about? 

THE  PRESIDENT.  Shoot — ^go  right  ahead. 

Q.  Do  you  favor  development  of  Niagara 
power  as  well  as  the  St.  Lawrence? 

THE  PRESIDENT.  Oh,  yes.  I  am  for  the  de- 
velopment of  all  the  power  we  can  get  in 
that  corner  of  the  United  States.  There  are 
four  great  power  projects  in  this  country  in 
which  I  am  vitally  interested.  The  North- 
east power  project,  which  includes  New 
England  developments,  about  which  I  was 
talking  awhile  ago,  and  the  St.  Lawrence. 
And  the  Northwest,  which  includes  the 
Columbia  and  Snake  River  developments, 
and  the  Central  Valley  of  California.  And 
the  Southwest,  which  includes  Boulder  Dam, 
and  those  projects  in  Texas  and  Oklahoma. 
And  the  southeast — ^northeast — northwest 
Arkansas,  southwest  Missouri,  and  northeast 
Oklahoma.  And  then  the  southeast  devel- 
opment of  the  Tennessee  Valley,  and  the 
Savannah,  and  the  rivers  in  South  Carolina 
on  which  we  are  building  power  projects. 

We  will  then  have  a  network  of  power  in 


13 


[3]    Jan.  5 


Public  Papers  of  the  Presidents 


the  United  States,  and  if  we  can  get  the 
three  developments  for  the  upper  Missis- 
sippi, Missouri,  and  Ohio  Valleys,  we  will 
have  an  inexhaustible  supply  of  power,  of 
which  I  think  there  can  never  be  too  much. 

Q.  In  connection  with  that,  are  you  figur- 
ing on  the  St.  Lawrence  Valley? 

THE  PRESIDENT.  St.  Lawreuce  Seaway,  I 
want  the  St.  Lawrence  Seaway  development 
all  the  way  to  Chicago,  so  that  we  can — and 
Duluth — so  that  we  can  tie  up  in  Chicago. 
We  have  nothing  at  the  docks  in  Chicago 
and  Duluth. 

Q.  I  wonder  whether  you  are  in  favor  of 
a  long-term  TVA  for  that  area? 

THE  PRESIDENT,  No,  that  will  have  to  be 
a  proposal  carried  out  between  the  Govern- 
ments of  Canada  and  the  United  States,  and 
the  division  of  power  in  the  United  States 
will  have  to  be  under  the  control  of  the 
Federal  Government. 

Q.  Well,  Mr.  President,  will  you  send  a 
message  on  New  England  development? 

THE  PRESIDENT.  I  probably  will.  As  soon 
as  possible,  I  probably  will  send  a  letter  to 
the  Congress  on  the  subject.^ 

[lo.]  Q.  Mr.  President,  is  it  true  that 
you  plan  to  decide  by  February  15th  on  con- 
struction of  a  hydrogen-powered  atomic 
bomb  project?  ^ 

THE  PRESIDENT.  I  have  no  comment  to 
make  on  that. 

[11.]  Q.  Mr.  President,  in  your  message 
yesterday,  I  believe  you  did  not  mention  the 
Missouri  Valley  Authority? 

THE  PRESIDENT.  Well,  I  am  interested  in 
the  development  of  the  Missouri,  Mississippi, 
and  Ohio  Rivers  as  a  project.  I  think  they 
will — all  three  of  them,  the  Mississippi,  the 
Missouri,  and  the  Ohio  Rivers — will  soon 
be  developed  as  a  central  valley  project  for 
the  United  States. 


®  See  Item  33. 
■^  See  Item  26. 


[12.]  Q.  Mr.  President,  do  you  favor 
Federal  development  of  the  Niagara  River? 

THE  PRESIDENT.  What's  that? 

Q.  Federal  development  of  the  Niagara 
River? 

THE  PRESIDENT.  I  waut  to  make  it  a  seaway 
of  the  St.  Lawrence  River.  If  the  Niagara 
is  included  in  that,  why  of  course  that  will 
be  all  right.  I  don't  think  it  is,  though. 
I  think  there  is  a  canal  that  goes  around  that 
still. 

Q.  The  United  States  and  Canada  are  now 
conferring  on  power  development  in  the 
Niagara  River. 

THE  PRESIDENT.  The  St.  Lawreuce  devel- 
opment, I  think,  was  our  project,  and  I  am 
for  the  development  of  the  St.  Lawrence 
Seaway  power  project.  You  can  make  it  as 
broad  as  you  want  to. 

[13.]  Q.  In  view  of  your  comment  on 
the  Missouri  election,  do  you  have  anybody 
in  Ohio  that  you  like  the  looks  of? 

THE  PRESIDENT.  I  don't  dabble  in  primary 
politics  in  any  State  except  Missouri. 

Q.  Mr.  President,  in  Pennsylvania  Senator 
Myers  is  unopposed  for  the — ^the  Democratic 
nomination  for  Senator.  The  Republicans, 
I  believe,  have  a  couple  of  boys  that  haven't 
been  definitely  announced.  I  was  wonder- 
ing if  you  are  going  into  Pennsylvania  to 
speak  for  Senator  Myers? 

THE  PRESIDENT.  It  wou't  be  ucccssary  for 
me  to  go  into  Pennsylvania  in  the  primary. 
I  don't  care  how  much  trouble  the  Repub- 
licans have  in  the  primary.  I  hope  the 
Democrats  won't  have  any.     [Laughter] 

Q.  I  mean  subsequently? 

THE  PRESIDENT.  Well,  I  wiU  auswer  that 
question  when  the  time  comes. 

[14.]  Q.  Mr.  President,  I  would  like  to 
get  this  Missouri  Valley  thing  straightened 
out. 

THE  PRESIDENT.   ShoOt. 

Q.  Is  it  your  idea  that  the  Pick-Sloan 


14 


Harry  S.  Truman,  ig$o 


Jan.  5    [3] 


plan  ^  will  eventually  envelop  the  Missouri 
Valley  Authority? 

THE  PRESIDENT.  Yes.  Ycs.  I  am  very 
sure  it  vi^ill. 

Q.  That  is  your  idea,  that  eventually  Pick- 
Sloan  v^ill 

THE  PRESIDENT.  Will  develop  all  the  Mis- 
souri Valley  Authority.  Then  I  v^ant  to 
develop  the  Mississippi  and  Ohio  in  con- 
junction w^ith  the  suggestion  covering  the 
whole  valley. 

Q.  Now  then,  on  the  Missouri,  will  you 
have  an  authority — an  administration  for  the 
Pick-Sloan  plan,  or  will  you  still  have 

THE  PRESIDENT.  We  wiU  cross  that  bridge 
when  we  get  to  it.  I  am  not  ready  to  go  into 
detail  on  it  at  all.  There  has  been  too  much 
detail  on  it  now.  That  is  the  reason  we  are 
having  trouble  with  it.  You  have  got  nine 
Governors  of  nine  States  on  that  river. 

[15.]  Q.  Mr.  President,  one  more  ques- 
tion in  answer  to  Mrs.  Craig's?  ^ 

THE  PRESIDENT.   Sure. 

Q.  You  said  that  you  were  covering  the 
plan  with  a  letter.  Does  that  apply  solely 
to  Northeast  power,  or  the  whole  project? 

THE  PRESIDENT.  That  applies  to  New  Eng- 
land. We  have  already  made  a  statement 
on  the  St.  Lawrence  Seaway  and  power 
project.  I  am  anxious  to  see  that  there  is 
proper  development  of  power  in  the  New 
England  area. 

[16.]  Q.  When  do  you  plan  to  submit 
your  special  message  on  taxes? 


®  Joint  plan  for  the  division  of  responsibility  in  the 
Missouri  Valley  between  the  Corps  of  Engineers  and 
the  Bureau  of  Reclamation.  The  Engineer  Corps 
was  given  responsibility  for  determining  the  capac- 
ities of  main-stem  and  tributary  reservoirs  for  flood 
control  and  navigation.  The  Bureau  assumed  re- 
sponsibility for  determining  the  capacities  of  reser- 
voirs for  irrigation  purposes.  The  plan  was 
approved  by  Congress  on  December  22,  1944  (sec. 
9,  58  Stat.  891).  However,  the  Congress  did  not 
approve  President  Roosevelt's  request  for  the  crea- 
tion of  a  Missouri  Valley  Authority. 

*Mrs.  May  Craig  of  the  Portland  (Maine)  Press 
Herald. 


THE  PRESIDENT.  Just  as  soon  as  it  is  ready .^° 

Q.  Mr.  President,  what  are  your  plans  on 
strengthening  the  antitrust  laws? 

THE  PRESIDENT.  They  are  in  the  message. 
I  made  them  as  plain  as  I  could  in  the  mes- 
sage.^^ 

Q.  You  spoke  of  future  recommendations. 

THE  PRESIDENT.  That  is  correct.  Just  as 
quickly  as  I  can  get  the  recommendations 
ready,  I  will  send  them  down. 

Q.  The  same  for  small  business  ? 

THE  PRESIDENT.  Yes.  They  cover  both. 
Can't  have  one  without  the  other. 

[17.]  Q.  Mr.  President,  how  do  you  like 
the  reaction  to  your  message  yesterday? 

THE  PRESIDENT.  It  was  fine.  I  told  you 
that  yesterday  as  I  came  out.    [Laughter] 

Q.  Mr.  President,  how  did  you  like  the 
Republican  response  to  your  reference  to 
the 

THE  PRESIDENT.  I  was  highly  pleased  when 
they  turned  that  into  an  ovation  for  me. 
[Laughter] 

Q.  Mr.  President,  do  you  expect  a  similar 
ovation  when  you  explain  how  much  a 
moderate  tax  increase  is? 

THE  PRESIDENT.  Yes.  Ycs,  I  do.  Especially 
from  the  Democrats. 

[18.]  Q.  Are  you  encouraged  to  go  back 
to  Key  West  again  this  winter? 

THE      PRESIDENT.     Well,      I      dou't     kuOW 

whether  I  can  go  or  not.  I  would  if  I  could. 
Mighty  nice  place  to  be  when  you  want 
plenty  of  sunlight.  They  tell  me  it  is  going 
down  to  zero  here  pretty  soon.  I  suppose 
we  will  all  want  to  go  where  it  is  warm. 

What  did  you  ask  me? 

[19.]  Q.  There  was  a  rise  in  stock  mar- 
ket prices,  I  noticed,  after  you  spoke.  Do 
you  regard  that  as  one  of  the  good  reac- 
tions  

THE  PRESIDENT.  Well,  I  don't — I  cau't  com- 
ment on  that  because  I  didn't  pay  any  atten- 

'<*  See  Item  18. 
"  See  Item  2. 


15 


[3]    Jan.  5 


Public  Papers  of  the  Presidents 


tion  to  that.  I  wasn't  making  a  speech  to 
affect  the  stock  market.  [Laughterl  It 
was  in  the  public  interest. 

[20.]  Q.  Was  Speaker  Rayburn's  remark 
about  the  size  of  the  budget  intentional,  or 
a  slip,  or  ^^ 

THE  PRESIDENT.  Well  now,  I  Can't  answer 
for  Speaker  Rayburn.  Why  don't  you  ask 
him  that  question?  The  budget  will  go 
down — the  Budget  Message  will  go  down 
Monday  morning — ^Monday  at  noon — ^when- 
ever the  Congress  meets,  and  we  will  have 
the  seminar  on  the  Budget  on  Saturday 
morning,^^  and  you  will  know  just  as  much 
about  it  as  I  do.  I  am  not  going  to  discuss 
it  now. 

[21.]  Q.  Mr.  President,  your  reference  to 
the  power  development  in  the  big  river 
basins  was  largely  in  terms  of  electric  power. 
You  have  in  mind,  I  presimie,  more  general 
multipurpose  development? 

THE  PRESIDENT.  The  principal  develop- 
ment in  the  central  valley  of  the  Missouri, 
Mississippi,  and  Ohio  is  navigation  and  flood 
control.  Up  as  far  as  Sioux  City,  Iowa,  on 
the  Missouri,  there  is  no  possible  power  for 
that  particular  project  except  maybe  on  some 
of  the  branches.  The  Missouri  River  carries 
more  sediment  than  any  other  river  in  the 
world  except  the  Danube,  and  if  you  would 
attempt  to  build  a  dam  from  bluff  to  bluff 
on  the  Missouri  River,  right  below  Sioux 
City,  Iowa,  it  wouldn't  be  but  about  a  year 
and  a  half  and  you  would  have  lots  of  mud 
behind  the  dam,  and  you  would  have  a  fall 
there. 

The  development  of  the  Missouri,  Ohio, 
and  the  Mississippi  are  projects  that  will  have 
to  be  worked  out  as  the  features  of  the 


"As  reported  in  the  press,  the  Speaker  saw  the 
new  budget  during  a  White  House  conference  on 
January  3,  after  which  he  stated  that  the  budget 
would  call  for  an  expenditure  of  "a  little  above 
$42  billion." 

^^  See  Item  8. 


ground  reveal  its  condition. 

Q.  Speaking  of  the  Ohio  Valley,  how  far 
up  the  river  would  you  go  in  the  develop- 
ment of  it? 

THE  PRESIDENT.  Do  you  know  where  the 
Ohio  originates?  At  Pittsburgh,  where  the 
Alleghenies  come  together,  where  there  are 
now  some  flood  control  and  power  dams  on 
the  Monongahela  River.  And  the  way  to 
control  floods  is  to  control  the  little  rivers, 
and  that  will  have  to  be  done  all  over  that 
valley  in  order  to  control  the  floods. 

Q.  That  is  mainly  a  flood  control  proposi- 
tion for  the  Ohio  Valley? 

THE  PRESIDENT.  That  is  the  most  impor- 
tant part  of  the  development. 

[22.]  Q.  You  have  made  recommenda- 
tions several  times  on  the  Central  Valley  of 
California? 

THE  PRESIDENT.  The  Valley  of  California — 
Central  Valley  of  California,  yes.  I  am  in 
the  same  frame  of  mind  as  I  am  for  the  rest 
of  these  developments.  I  want  to  see  a 
Central  Valley  Authority  from  Shasta  Dam 
all  the  way  up  to  the  San  Bernadino 
Mountains. 

[23.]  Q.  Where  there  are  expensive  de- 
tails of  construction,  whom  do  you  want  to 
transmit  the  power? 

THE  PRESIDENT.  Where  it  is  necessary,  the 
United  States  Government.  Where  private 
industry  can  do  it  as  cheaply  as  the  United 
States  Government,  I  am  happy  to  have  them 
doit. 

[24.]  Q.  Mr.  President,  do  you  plan  to 
find  out  the  type  of  authority  for  that  Savan- 
nah Valley  in  the  southeast? 

THE  PRESIDENT.  I  hadn't  given  that  any 
thought. 

Q.  Merely  want  the  dam  built? 

THE  PRESIDENT.  I  waut  power  developed, 
principally. 

[25.]  Q.  Mr.  President,  do  you  antici- 
pate any  real  coordination  on  these  three 


16 


Harry  S.  Truman,  ig^o 


Jan.  5    [4] 


river  valleys  in  your  present  term  of  office? 

THE  PRESIDENT.  Which  three  do  you 
mean? 

Q.  The  Mississippi,  Missouri,  and  Ohio? 

THE  PRESIDENT.  That  is  a  tremendous  proj- 
ect— will  cost  about  a  billion  and  a  half 
dollars.    If  it  should  be,  it  will  have  to  come 


more  or  less  gradually.  We  have  already 
spent  a  billion,  250  million.    It  is  about  time 

we  did  some  developments 

Reporter:  Thank  you,  Mr.  President. 

note:  President  Truman's  two  hundred  and  tenth 
news  conference  was  held  in  his  office  at  the  White 
House  at  10:40  a.m.  on  Thursday,  January  5,  1950. 


4    Remarks  at  the  American  Federation  of  Labor's  Samuel  Gompers 
Centennial  Dinner.    January  5,  1950 


Mr.  Chairman,  Mr,  Vice  President,  mem- 
bers of  this  great  organization: 

I  have  been  over  at  the  house  all  evening, 
working  on  two  more  messages  on  the  state 
of  the  Union.  One  of  them  is  ready  to  go 
down  tomorrow.  It  is  the  Economic  Mes- 
sage. And  then  I  have  one  that  is  creating 
a  great  deal  of  conversation,  known  as  the 
Budget  Message.  Everybody  seems  to  know 
all  about  it  but  me,  and  I  am  the  only  one 
that  knows  all  the  figures  in  it. 

But  I  was  sitting  over  there  thinking 
about  this  celebration  in  honor  of  one  of 
labor's  greatest  statesmen,  and  I  couldn't 
stay  away. 

I  knew  that  anything  I  would  say  would 
be  a  surplus  remark  after  the  Vice  President, 
and  Matthew  WoU,  and  William  Green  had 
paid  tribute  to  the  great  Samuel  Gompers; 
but  I  want  you  to  understand  that  I  remem- 
ber him  distincdy  as  the  originator  of  the 
great  movement  which  set  labor  free.  And 
I  wanted  to  come  over  here  and  pay  tribute 
to  him. 

I  remember  when  he  passed  away.  He 
passed  away  in  1924,  the  year  in  which  I  was 
defeated  for  reelection — and  they  never  suc- 
ceeded in  doing  that  to  me  since. 


I  was  one  of  Samuel  Gompers'  great  ad- 
mirers when  I  was  a  very  young  man  on  the 
farm.  Everybody  in  that  day  and  age  con- 
sidered him  a  labor  statesman.  He  was  not 
only  a  labor  statesman  in  a  bipartisan  sense, 
but  he  was  just  as  good  a  Democrat  as  I 
ever  was. 

I  remember  very  distinctly  his  support  of 
Woodrow  Wilson  when  Woodrow  Wilson 
needed  that  support  worse  than  anything  he 
ever  needed  in  his  life.  That  was  when 
California  decided  the  election  for  Woodrow 
Wilson  in  19 1 6. 

Samuel  Gompers  made  a  great  contribu- 
tion to  the  welfare  of  this  great  Nation  of 
ours,  and  I  consider  it  a  very  high  honor  that 
Mr.  Green  and  the  people  who  are  holding 
this  meeting  tonight  should  ask  me  to  come 
over  and  pay  this  very  slight  tribute  to  one 
of  your  greatest  leaders  who  ever  lived. 

And  I  thank  you  for  that  privilege. 

note:  The  President  spoke  at  10:42  p.m.  at  the 
Statler  Hotel  in  Washington.  In  his  opening  words 
he  referred  to  George  Meany,  secretary-treasurer  of 
the  American  Federation  of  Labor  and  chairman  of 
the  dinner,  and  Alben  W.  Barkley,  Vice  President 
of  the  United  States.  Later  in  his  remarks  the 
President  referred  to  William  Green  and  Matthew 
Woll,  president  and  vice  president  of  the  American 
Federation  of  Labor. 


17 


[5]    Jan.  6 


Public  Papers  of  the  Presidents 


5    Statement  by  the  President  on  the  Midcentury  White  House 
Conference  on  Children  and  Youth.    January  6,  1950 


IN  THE  State  of  the  Union  Message  to 
Congress,  I  called  attention  to  the  supreme 
need  of  our  time  to  use  our  great  powers  of 
mastery  over  the  physical  world  to  develop 
the  moral  and  legal  framework  within  which 
mankind  can  live  together  in  peace  and 
harmony.  The  peoples  of  the  earth  look  to 
us  as  never  before  for  good  will,  strength, 
and  wise  leadership.  If  we  are  not  to  fail 
them  and  ourselves,  our  children  must  be 
prepared. 

It  is  in  the  hope  that  in  the  next  half  cen- 
tury we  may  write  a  new  chapter  of  history, 
different  from  the  first  half,  with  its  wars 
and  injustices  on  an  unparalleled  scale,  that 
I  have  proposed  the  Midcentury  White 
House  Conference  on  Children  and  Youth 
to  be  held  in  December  1950. 

I  was  delighted  to  learn  from  the  repre- 
sentatives of  the  national  committee  for  this 
Conference,  who  called  on  me  today,  that 
already  great  numbers  of  citizens  see  the 
significance  of  this  effort,  and  are  working 
together  to  make  this  Midcentury  Conference 


a  powerful  force  for  improving  the  environ- 
ment in  which  our  children  grow  up,  for 
increasing  our  understanding  of  children's 
needs,  and  for  multiplying  their  opportuni- 
ties for  happiness  and  useful  service.  I  have 
been  impressed  by  the  opportunity  provided 
in  this  Conference  to  combine  widespread 
public  participation  with  expert  help,  in  a 
common  effort  to  advance  the  well-being  of 
our  next  generation.  I  have  urged  the  com- 
mittee to  press  forward  with  every  resource 
to  accomplish  this  objective  and  have  as- 
sured the  committee  of  my  complete  support. 

note:  The  Midcentury  White  House  Conference  on 
Children  and  Youth  was  held  on  December  3-7, 
1950,  in  Washington,  D.C.  For  the  President's 
address  before  the  Conference  on  December  5,  see 
Item  299.  See  also  1949  volume,  this  series,  Items 
198,  204. 

As  recorded  in  the  White  House  appointment 
book,  the  following  representatives  of  the  National 
Committee  for  the  Conference  called  on  the  Presi- 
dent on  January  6,  1950,  at  11:45  a.m.:  Mrs.  Frank- 
lin D.  Roosevelt,  Chauncey  McCormack,  president 
of  the  Chicago  Art  Institute,  Mrs.  David  Levy,  and 
Katharine  F.  Lenroot,  Chief  of  the  Children's  Bureau, 
Federal  Security  Agency. 


6    Annual  Message  to  the  Congress:  The  President's 
Economic  Report.    January  6,  1950 


To  the  Congress  of  the  United  States: 

As  1950  opens,  renewed  confidence  pre- 
vails in  the  American  economy.  This  con- 
fidence is  in  itself  an  element  of  strength; 
and  it  is  justified  by  the  facts. 

Late  in  1948  we  stood  at  the  peak  of  the 
inflationary  boom.  It  was  clear  that  an 
eventual  adjustment  was  inevitable  before 
we  would  have  a  firm  basis  for  stability  and 
steady  economic  growth.  During  1949  we 
met  the  test  of  that  adjustment.  Despite 
rough  going  for  a  few  months,  we  made 
necessary  changes  with  much  less  distress 


and  difficulty  than  ever  before.  Today  we 
are  on  firmer  ground  than  we  were  a  year 
ago. 

Prices  are  down  somewhat,  and  show  the 
relative  stability  on  which  firm  business  and 
consumer  plans  can  be  based.  Inventories 
of  manufacturers  and  retailers  have  been  re- 
duced, and  now  are  better  adjusted  to  the 
rate  of  sales.  These  changes  were  accom- 
plished with  only  very  small  reductions  in 
dollar  incomes  and  consumer  spending. 
Allowing  for  price  changes,  the  volume  of 
goods  and  services  purchased  by  consumers 


18 


Harry  S.  Truman,  ig^o 


Jan.  6    [6] 


in  1949  was  actually  larger  than  in  1948. 
Business  is  proceeding  with  good  profit  pros- 
pects. Home  building  in  1949  reached  a 
higher  level  than  ever  before. 

More  important  still,  employment  and  pro- 
duction, which  declined  during  the  first  few 
months  of  1949,  have  in  recent  months  been 
moving  upward  again.  Considerably  more 
people  now  have  jobs  than  at  the  low  point 
last  year.  Industrial  production  has  in- 
creased by  9  percent  since  July.  Holiday 
sales  have  hit  an  all-time  peak. 

The  relatively  safe  passage  from  inflation 
to  greater  stability  was  no  accident.  Busi- 
nessmen, workers,  and  farmers  demonstrated 
much  greater  judgment  and  restraint  than 
in  earlier  similar  periods.  Their  actions 
showed  that  they  had  gained  understanding 
of  the  causes  of  our  economic  situation  and 
what  should  be  done  to  improve  it.  Their 
efforts  were  aided  by  public  policies  which 
had  been  developed  over  the  years  and  had 
been  improved  by  experience.  Government 
measures  in  such  fields  as  credit  and  bank- 
ing, social  insurance,  and  agricultural  price 
supports,  proved  their  worth  in  cushioning 
the  downswing  and  lending  strong  support 
to  the  recovery  movement. 

This  effective  teamwork  between  free 
enterprise  and  Government  confounded  the 
enemies  of  freedom  who  waited  eagerly,  dur- 
ing 1949,  for  the  collapse  of  the  American 
economy.  Our  economy  continues  strong. 
We  are  able  to  continue  and  advance  the 
domestic  and  international  programs  which 
are  the  hope  of  free  peoples  throughout  the 
world. 

We  have  succeeded  in  avoiding  a  serious 
set-back  in  1949.  We  have  regained  stabil- 
ity; but  we  need  more  than  stability.  The 
great  motivating  force  in  our  economic  sys- 
tem is  the  perpetual  will  to  move  ahead,  to 
use  our  skills  and  our  resources  more  effi- 
ciendy,  to  produce  more  at  lower  cost,  and 
to  provide  a  better  and  richer  life  for  all  our 


citizens.  The  American  economy  must  ex- 
pand steadily. 

Maximum  production  and  maximum  em- 
ployment are  not  static  goals;  they  mean 
more  jobs  and  more  business  opportunities 
in  each  succeeding  year.  If  we  are  to  attain 
these  objectives,  we  must  make  full  use  of 
all  the  resources  of  the  American  economy. 

During  the  past  year,  we  did  not  do  so. 
Our  success  thus  far  in  reversing  the  forces 
of  recession  cannot  hide  the  high  price  we 
paid  for  economic  instability.  The  down- 
turn brought  anxiety  and  suffering  to  mil- 
lions who  became  unemployed,  and  to  their 
families.  It  brought  failure  to  many  small 
businesses.  It  reduced  the  opportunities  for 
the  creation  of  new  enterprises.  It  hurt  the 
free  nations  whose  continuing  revival  de- 
pends upon  trade  with  us.  It  caused  our 
total  output  for  1949  to  be  some  10  to  13 
billion  dollars  lower  than  it  would  have  been 
if  maximum  production  and  employment 
had  been  maintained. 

In  earlier  economic  reports,  I  emphasized 
the  dangers  of  permitting  inflationary  pres- 
sures to  continue,  and  urged  measures  to 
hold  them  in  check.  Most  of  these  measures 
were  not  adopted,  and  the  break  in  the  eco- 
nomic boom,  against  which  I  had  warned, 
came  to  pass.  Six  months  ago,  the  Midyear 
Economic  Report  pointed  out  the  way  to 
recovery.  Additional  steps  should  now  be 
taken  to  complete  the  process  of  recovery. 
We  must  not  again  make  the  mistake  of  fail- 
ing to  adopt  aflSrmative  policies  necessary  for 
continued  economic  stability  and  growth. 

At  present,  our  economy  is  moving  up- 
ward again.  But  we  have  not  yet  reached 
the  point  of  fully  employing  our  resources. 

Although  output  is  high,  some  resources 
of  plant  and  equipment  are  not  being  fully 
used.  Although  employment  is  large,  un- 
employment in  recent  months  has  been 
about  1 54  to  2  million  higher  than  in  the 
corresponding  months  of   1948.     Further- 


19 


[6]    Jan.  6 


Public  Papers  of  the  Presidents 


more,  our  technology,  productive  facilities, 
and  labor  force  are  continuing  to  grow. 

If  we  are  to  use  all  these  resources,  we  must 
tap  the  dynamic  forces  of  expansion  within 
the  American  economy.  One  of  the  most 
important  of  these  dynamic  forces  is  the 
process  of  business  investment,  by  which 
productive  capacity  is  enlarged  and  im- 
proved. In  the  fourth  quarter  of  the  year, 
business  investment  has  not  kept  pace  with 
the  improvement  in  economic  conditions. 
If  the  downward  trend  in  business  invest- 
ment were  to  continue,  our  prospects  for  full 
recovery  and  continued  expansion  would  be 
seriously  endangered. 

There  is  no  need  for  this  decline  to  con- 
tinue. There  are  immense  opportunities  for 
business  investment  in  nearly  every  segment 
of  the  economy.  There  are  in  general  suffi- 
cient funds  available  to  businessmen  who 
want  to  seize  these  opportunities.  The  ini- 
tiative of  businessmen,  aided  by  proper  Gov- 
ernment policies,  can  and  should  soon  reverse 
the  trend  of  business  investment. 

Business  investment  can  continue  at  a 
high  level  only  if  markets  for  consumer 
goods  continue  to  expand.  Price  and  wage 
policies  should  be  directed  at  enlarging  these 
markets.  For  only  by  broadening  the  dis- 
tribution of  goods  and  services  can  our  busi- 
ness system  find  full  use  for  its  expanding 
productive  capacity. 

The  events  of  1949  demonstrated  anew  the 
basic  strength  of  the  American  economy. 
They  also  demonstrated  that  economic  affairs 
are  not  beyond  human  control.  We  should 
now  seek  to  establish  a  course  that  will  com- 
plete the  recovery  and  carry  us  on  to  steady 
economic  growth. 

SUMMARY  OF  THE  ECONOMIC  SITUATION 

Total  civilian  employment  in  1949  aver- 
aged 58.7  million,  somewhat  less  than  the 


average  of  59.4  million  in  1948,  and  was 
58.6  million  in  December  1949.  Nonagri- 
cultural  employment  fell  during  the  first  five 
months,  reaching  a  low  of  49.7  million  in 
May.  Since  that  month  it  has  increased  at 
more  than  the  usual  seasonal  rate,  reaching 
51.8  million  in  December. 

Over  the  year,  unemployment  averaged 
3.4  million,  or  about  5  percent  of  the  labor 
force,  compared  with  2.1  million  or  3  percent 
of  the  somewhat  smaller  labor  force  in  1948. 
Unemployment  at  its  worst  in  July  1949 
amounted  to  4.1  million.  In  December,  it 
was  just  below  3.5  million,  1.6  million  more 
than  in  December  1948.  There  has  been  a 
rapid  rise  in  the  number  of  unemployed 
workers  exhausting  their  rights  to  unemploy- 
ment benefits. 

Total  production  of  all  goods  and  services 
in  1949  was  259  billion  dollars.  Adjusted 
for  changes  in  prices,  this  was  about  i  per- 
cent lower  than  in  1948,  and  fell  short  of 
maximum  production  by  4  to  5  percent,  or 
10  to  13  billion  dollars.  The  sharpest  drop 
was  in  industrial  production,  which  averaged 
9  percent  lower  than  in  1948,  while  agricul- 
tural output  dropped  about  i  percent.  Con- 
struction advanced  about  5  percent,  and 
output  of  electricity  and  gas  rose  about  2 
percent.  There  was  a  gain  in  the  service 
industries. 

From  November  1948,  until  the  low  point 
of  July  1949,  industrial  production  declined 
17  percent.  Since  July  the  trend  has  been 
upward,  interrupted  only  by  work  stoppages. 
By  December  industrial  production  had 
regained  nearly  half  of  the  lost  ground. 

Prices  during  the  first  half  of  1949  showed 
a  general  but  moderate  decline,  followed  by 
relative  stability  in  the  second  half.  Whole- 
sale prices  by  the  end  of  the  year  were  down 
7  percent  from  their  level  of  a  year  earlier, 
and  II  percent  below  their  1948  peak.  The 
sharpest  declines  were  in  farm  and  whole- 


20 


Harry  S.  Truman,  ig$o 


Jan.  6    [6] 


sale  food  prices.  Farm  prices  are  now  23 
percent  below  the  postwar  peak  and  12  per- 
cent below  what  they  were  a  year  ago.  The 
drop  in  consumers'  prices  was  much  more 
moderate.  By  November  1949,  consumers' 
prices  had  declined  2  percent  below  the  level 
at  the  end  of  1948  and  3  percent  below  their 
postwar  peak. 

Wage  increases  were  received  by  a  much 
smaller  number  of  workers  than  in  previous 
postwar  years.  There  was  no  general  wage 
pattern.  Wages  averaged  slighdy  higher 
than  in  1948,  and  consumers'  prices  were 
somewhat  lower.  One  outstanding  develop- 
ment was  the  growth  of  pension  and  social 
insurance  plans  financed  in  whole  or  in  part 
by  empoyers. 

Wor\  stoppages  in  1949  were  about  the 
same  in  number  as  in  1948,  but  the  two 
major  stoppages,  in  coal  and  steel,  involved 
such  a  large  number  of  workers  that  the 
loss  in  man-days  of  work  was  about  50  per- 
cent greater  than  in  1948. 

Profits  were  lower  in  1949  than  in  1948. 
For  the  year  as  a  whole,  corporate  profits 
before  taxes  and  the  inventory  valuation  ad- 
justment were  27.6  billion  dollars,  a  drop 
of  about  21  percent.  Much  of  the  loss  in 
reported  profits  represented  the  effect  of  fall- 
ing prices  on  inventory  valuation. 

Farm  income  (realized  net  income  of  farm 
operators)  declined  about  15  percent,  reflect- 
ing the  decline  in  prices.  The  agricultural 
price-support  program  prevented  a  much 
sharper  decline  in  prices  and  incomes. 

Credit  terms  generally  eased  during  the 
year.  Interest  rates  declined.  Business 
loans,  reflecting  the  liquidation  of  inven- 
tories, declined  sharply  during  the  first  six 
months  but  began  to  advance  again  in  the 
latter  part  of  the  year.  Instalment  credit, 
after  a  slight  decline  in  the  first  quarter, 
resumed  its  advance  and  reached  a  new  post- 
war peak.    Most  notable  was  the  more  than 


60  percent  increase  in  automobile  instalment 
credit  during  the  year. 

Consumers'  disposable  income  was  slightly 
higher  in  1949  than  in  1948,  rising  from 
190.8  billion  dollars  to  192.9  billion  dollars. 
The  trend,  however,  was  different,  rising 
every  quarter  in  1948  and  falling  every  quar- 
ter in  1949.  In  the  fourth  quarter  of  1949 
the  annual  rate  was  191.1  billion  dollars. 
Unemployment  compensation  in  1949  con- 
tributed 1.9  billion  dollars  to  consumer  in- 
come, I  billion  dollars  more  than  in  1948. 

Consumer  expenditures  for  goods  and 
services  were  remarkably  constant  through- 
out 1949.  Their  total  was  179  billion  dol- 
lars. This  was  equal  to  the  total  for  1948  as 
a  whole,  but  about  2  billion  dollars  lower 
than  the  annual  rate  in  the  second  half  of 
that  year.  Allowing  for  price  changes,  con- 
sumers' expenditures  represented  a  slightly 
higher  volume  of  goods  and  services  pur- 
chased than  in  1948.  An  increased  propor- 
tion of  consumer  spending  was  devoted  to* 
purchases  of  services  and  durable  goods,  a 
decreased  proportion  to  the  purchase  of  non- 
durable goods. 

Net  personal  saving  amounted  to  14.4  bil- 
lion dollars,  compared  with  12  billion  dollars 
in  1948.  During  1949,  however,  the  trend 
of  saving  was  downward,  from  an  annual 
rate  of  16.3  billion  dollars  in  the  first  quarter 
to  13. 1  billion  dollars  in  the  fourth.  While 
personal  saving  in  1949  was  high  by  any 
previous  peacetime  standards,  it  is  estimated 
that  about  one-third  of  all  families  did  not 
add  to  their  savings,  but  instead  spent  more 
than  they  earned. 

Private  domestic  investment  in  1949  was 
18  percent  below  the  preceding  year,  primar- 
ily because  of  a  shift  from  accumulation  to 
liquidation  of  inventories.  By  the  fourth 
quarter,  the  liquidation  of  inventories  was 
slowed  down,  but  investment  in  plant  and 
equipment  continued  to  decline.    The  drop 


21 


[6]    Jan.  6 


Public  Papers  of  the  Presidents 


in  business  investment  was  the  principal 
feature  in  the  lower  level  of  economic  activ- 
ity in  1949. 

Construction,  in  spite  of  a  slow  start, 
exceeded  the  high  level  attained  in  1948  by 

3  percent  in  dollar  volume,  and  was  an  im- 
portant stabilizing  force  in  the  economy. 
Public  construction  increased  by  25  percent 
over  1948.    Private  construction  declined  by 

4  percent,  but  residential  construction  was 
particularly  strong  in  the  second  half  of  the 
year,  rising  to  a  new  postwar  peak  in  the 
fourth  quarter.  Housing  starts  for  the  year 
exceeded  1,000,000,  compared  with  931,300 
in  1948.  The  number  of  multi-family  units 
started  was  about  one-fourth  larger  than  in 
1948. 

By  the  end  of  the  year,  the  rate  of  total 
construction  activity  was  11  percent  higher 
than  it  was  a  year  earlier,  and  the  backlog 
of  contracts  had  increased  considerably.  A 
reduction  in  prices  and  costs,  the  easing  of 
credit,  the  expanded  authority  of  the  RFC 
to  purchase  mortgages,  and  the  renewal  of 
FHA  authority  to  insure  rental  projects,  all 
contributed  to  the  upsurge. 

Corporate  finance  reflected  the  changes  in 
the  economic  situation.  The  shift  from  in- 
creasing inventories  and  increasing  customer 
credit  in  1948,  to  inventory  reduction  and 
a  lower  rate  of  increase  in  customer  credit  in 
1949,  permitted  corporations  to  improve 
their  financial  liquidity  while  continuing 
large  oudays  for  new  plant  and  equipment. 
Liquid  assets  increased  by  2.5  billion  dollars. 
Short-term  debt  decreased  by  4  billion,  but 
long-term  debt  increased  by  about  the  same 
amount.  In  1949,  internal  sources  of  cor- 
porate funds  were  larger  than  required  for 
capital  investment;  in  1948,  internal  sources 
of  funds  amounted  to  only  about  70  percent 
of  the  requirements  for  capital  investment. 

The  export  surplus  (the  excess  of  our  ex- 
ports of  goods  and  services  over  our  imports) 
was  only  slightly  lower  in  total  in  1949  than 


in  1948,  but  it  fell  sharply  in  the  second  half 
of  the  year.  This  resulted  primarily  from 
a  sharp  drop  in  our  exports  of  goods  and 
services,  following  severe  losses  of  gold  and 
dollars  by  the  countries  in  the  sterling  area. 
The  devaluation  of  foreign  currencies  sub- 
sequent to  these  losses  has  so  far  had  little 
effect  on  our  economy. 

Government  fiscal  transactions  in  1949 
helped  to  stabilize  the  economy.  Cash  pay- 
ments by  governments — ^Federal,  State  and 
local — were  about  8  billion  dollars  higher 
in  the  calendar  year  1949  than  in  1948.  Fed- 
eral cash  payments  alone  were  6.2  billion 
dollars  higher.  Nearly  half  of  this  rise  re- 
sulted from  the  impact  of  recessionary  forces 
on  such  programs  as  unemployment  compen- 
sation and  agricultural  price  supports,  and 
the  remainder  was  mainly  the  result  of  larger 
expenditures  for  international  and  defense 
programs.  The  increase  in  State  and  local 
cash  payments  was  caused  chiefly  by  higher 
expenditures  for  schools,  roads,  and  other 
public  works.  With  increasing  government 
payments,  and  with  a  slight  decline  in  the 
gross  national  product,  the  ratio  of  all  gov- 
ernment payments  to  total  output  increased 
from  about  20  percent  in  1948  to  23^4  per- 
cent in  1949.  Cash  receipts  declined  pri- 
marily because  of  the  1948  cut  in  Federal 
taxes. 

As  a  result  of  these  changes,  the  cash  sur- 
plus of  all  governments — ^Federal,  State,  and 
local — which  amounted  to  over  7  billion 
dollars  in  the  calendar  year  1948,  became  a 
cash  deficit  of  3  billion  dollars  in  1949.  For 
the  Federal  Government,  the  result  was  a 
shift  from  a  cash  surplus  of  8  billion  dollars 
to  a  cash  deficit  of  about  1.7  billion  dollars. 

UNIFYING   PRINCIPLES   FOR  ACTION 

These  facts  show  our  tremendous  eco- 
nomic strength.  But  this  strength  does  not 
rest  in  material  things  alone. 


22 


Hatry  S.  Truman,  ig$o 


Jan.  6    [6] 


If  we  are  to  continue  our  economic  growth 
the  major  economic  groups  must  all  pull 
together — businessmen,  wage  earners,  and 
farmers  must  work  toward  the  same  ends. 
Government,  in  turn,  must  carry  out  the 
aspirations  of  the  whole  people. 

Our  success  will  depend  upon  the  wide- 
spread conviction  that  all  groups  have  a 
stake  in  the  expansion  of  the  economy — 
that  all  will  share  in  the  benefits  of  progress. 
In  the  days  ahead  we  must  broaden  our 
understanding  of  how  the  various  interests 
of  our  people  are  interrelated. 

Toward  this  end,  I  should  like  to  point 
out  certain  principles  on  which  we  can  all 
base  our  economic  efforts.  The  more  widely 
these  principles  are  understood,  the  better 
able  we  shall  be  to  solve  our  common  prob- 
lems and  reconcile  the  interests  of  different 
economic  groups.  The  more  widely  these 
principles  are  used  as  the  basis  for  economic 
action  and  decision,  the  more  rapid  will  be 
our  national  progress. 

First.  Our  economy  can  and  must  con- 
tinue to  grow. 

An  expanding  population  and  an  increas- 
ingly productive  labor  force  require  con- 
standy  expanding  employment  opportunities 
and  steadily  rising  levels  of  investment  and 
consumption.  Within  five  years,  we  can 
achieve  an  annual  output  in  excess  of  300 
billion  dollars.  The  gain  in  national  income 
would  be  equal  to  an  average  of  nearly 
$1,000  for  every  family  in  the  United  States. 
This  would  greatly  improve  standards  of 
living.  It  would  go  far  toward  our  goal  of 
the  complete  elimination  of  poverty.  It 
would  provide  employment  opportunities  for 
about  64  million  workers. 

Such  prospects  are  not  fanciful.  They  are 
based  upon  our  long-term  record  of  achieve- 
ment, including  some  years  when  we  did 
not  use  fully  our  resources  of  plant,  mana- 
gerial skills,  and  labor  force.    And  today,  we 


are  better  equipped  with  these  resources  than 
ever  before. 

But  we  will  not  make  this  progress  within 
five  years  unless  we  begin  to  move  in  that 
direction  now.  Our  immediate  goal  for 
1950  should  be  to  regain  maximum  employ- 
ment. This  requires  the  reduction  of  un- 
employment to  the  minimum  level  consistent 
with  labor  mobility  in  a  free  economy.  We 
should  strive  this  year  to  reduce  unemploy- 
ment from  35/2  million  to  2  million,  or  2^4 
million  at  most.  This  would  mean  about 
61  million  civilian  jobs.  It  would  mean 
stepping  up  our  national  output  by  about  7 
percent  above  the  1949  total.  These  are  our 
objectives  for  this  year  under  the  Employ- 
ment Act.  If  we  put  forth  sufficient  effort, 
we  can  reach  these  objectives  before  the 
year's  end. 

Second,  The  benefits  of  growth  and 
progress  must  extend  to  all  groups. 

Only  in  this  way  can  the  long-run  welfare 
of  any  group  be  preserved.  If  any  part  of 
our  economy  is  depressed,  or  fails  to  gain, 
it  can  only  serve  as  a  drag  against  the  gains 
of  other  parts.  There  is  no  room  for  the 
feeling  that  one  group  can  prosper  only  at 
the  expense  of  another.  There  is  abundant 
opportunity  for  all  groups  to  prosper  to- 
gether. Expansion  to  a  300  billion  dollar 
economy  within  five  years  would  place  30 
to  45  billion  dollars  more  per  year  in  the 
hands  of  consumers  for  buying  the  needs 
and  comforts  of  life.  It  would  provide  op- 
portunity for  profitable  business  investment 
in  plant,  equipment,  and  housing  which 
might  run  3  to  6  billion  dollars  per  year 
above  the  1949  level.  It  would  enable  farm- 
ers to  sell  about  10  percent  more  food  for 
domestic  consumption. 

Third.  This  growth  will  not  come  auto- 
matically, but  requires  conscious  purpose  and 
hard  work. 

Productivity  per  worker  should  be  in- 


23 


[6]    Jan.  6 


Public  Papers  of  the  Presidents 


creased  by  at  least  2  to  2)^  percent  a  year. 
Labor  should  base  its  policies  on  the  prospect 
of  a  stable  and  expanding  economy.  Busi- 
nessmen should  base  their  investment  poli- 
cies on  confidence  in  growth,  shape  their 
price  policies  to  the  needs  of  larger  markets, 
and  proceed  with  vigor  and  ingenuity  to 
develop  new  and  better  products  of  all  kinds. 
Farmers  should  make  full  use  of  new  tech- 
nology, and  make  shifts  in  production  to- 
ward those  commodities  most  needed  in  a 
growing  peacetime  economy. 

To  promote  an  environment  in  which 
businessmen,  labor,  and  farmers  can  act  most 
effectively  to  achieve  steady  economic  growth 
is  a  major  task  of  the  Government.  It  must 
perfect  measures  for  helping  to  stabilize  the 
economy.  It  must  build  up  the  natural  re- 
sources which  are  essential  to  economic 
progress,  and  expand  the  protective  measures 
against  human  insecurity.  It  must  keep 
open  the  channels  of  competition,  promote 
free  collective  bargaining,  and  encourage 
expanded  opportunities  for  private  initiative. 

Fourth,  The  fiscal  policy  of  the  Federal 
Government  must  be  designed  to  contribute 
to  the  growth  of  the  economy. 

The  Federal  Budget  is  an  important  part 
of  the  national  economy.  Wise  budgetary 
policies  can  promote  stability  and  maximum 
production  and  employment  throughout  the 
economy. 

In  fields  such  as  resource  development, 
education,  health,  and  social  security.  Gov- 
ernment programs  are  essential  elements  of 
our  economic  strength.  If  we  cut  these  pro- 
grams below  the  requirements  of  an  expand- 
ing economy,  we  should  be  weakening  some 
of  the  most  important  factors  which  promote 
that  expansion.  Furthermore,  we  must 
maintain  our  programs  for  national  security 
and  international  peace.  These  programs 
are  the  defense  of  the  world  against  disaster. 
Upon  them,  our  whole  future  depends. 


Government  revenue  policy  should  take 
into  account  both  the  needs  of  sound  Govern- 
ment finance  and  the  needs  of  an  expanding 
economy.  Federal  receipts  should  be  suffi- 
cient over  a  period  of  years  to  balance  the 
budget  and  provide  a  surplus  for  debt  re- 
duction. At  the  same  time,  the  tax  struc- 
ture, and  the  changes  made  in  it  from  time 
to  time,  should  be  such  as  to  promote  the 
amounts  and  types  of  investment,  consump- 
tion, and  saving  needed  for  economic  ex- 
pansion. We  should  recognize  that  the  ex- 
pansion of  the  economy  will  generate  addi- 
tional revenues  and  strengthen  the  fiscal 
position  of  the  Government. 

Fifth,  We  must  deal  vigorously  with 
trouble  spots  which  exist  in  our  economy 
even  in  times  of  general  prosperity. 

Special  measures  are  needed  to  help  low- 
income  groups  and,  even  more  important, 
to  provide  them  with  better  opportunities  to 
help  themselves.  We  must  deal  with  the 
particular  problems  of  communities  or  areas 
which  are  depressed,  or  whose  economic 
growth  has  been  retarded.  Whenever  a 
shortage  of  jobs,  or  lack  of  business  oppor- 
tunity, affects  as  many  persons  as  it  does 
today,  it  is  a  matter  for  national  concern. 
Economic  stagnation  anywhere  is  an  injury 
to  the  whole  economy.  We  must  direct 
specific  measures  to  these  special  problems. 

In  the  light  of  these  guiding  principles, 
I  turn  to  the  consideration  of  needed  eco- 
nomic policies. 

ECONOMIC   POLICIES 

Under  our  system,  private  and  public  poli- 
cies go  hand  in  hand.  Private  economic 
policies  provide  motive  power  of  the  econ- 
omy. Public  economic  policies  provide  the 
framework  for  economic  activity.  Sound 
plans  for  our  future  grovnh  must  take  ac- 
count of  both,  and  blend  them  to  achieve 
maximum  effectiveness. 


24 


Harry  S.  Truman,  ig$o 


Jan.  6    [6] 


Price  and  wage  policies 

The  basic  economic  problem  facing  the 
country  now  is  not  to  combat  inflation.  In- 
stead it  is  to  increase  production,  employ- 
ment, and  incomes  to  complete  the  recovery 
from  the  1949  downturn,  and  to  go  on  to 
the  higher  levels  which  will  be  made  possible 
by  a  growing  population  and  rising  produc- 
tivity. 

Business  policies  concerning  prices  should 
be  determined  with  these  objectives  in  mind. 
In  general,  prices  now  seem  at  or  near  a 
stable  level  consistent  with  continued  ex- 
pansion of  business  activity.  There  are  few 
if  any  major  areas  in  which  price  increases 
would  be  justified  under  present  circum- 
stances. In  some  outstanding  areas,  price 
cuts  are  feasible  and  needed  to  maintain  and 
expand  sales.  Furthermore,  technological 
progress  should  in  part  be  reflected  in  price 
reductions  from  time  to  time. 

Wage  adjustments  are  one  historic  method 
by  which  buying  power  has  increased  with 
increasing  productivity.  These  adjustments 
are  now  in  the  hands  of  management  and 
labor.  That  is  where  they  should  remain. 
At  the  same  time,  the  participants  in  collec- 
tive bargaining,  particularly  in  dominant 
industries,  should  recognize  that  wage  ad- 
justments affect  not  only  the  employers  and 
workers  immediately  engaged,  but  also  the 
whole  economy. 

I  am  glad  to  note  that  the  Council  of  Eco- 
nomic Advisers  is  encouraging  joint  confer- 
ences in  which  representatives  of  industry, 
agriculture,  and  labor  may  together  study 
the  economic  principles  underlying  maxi- 
mum economic  activity.  Such  conferences 
should  be  productive  of  improved  policies. 

Business  investment 

The  large  and  imaginative  programs  of 
expansion  and  modernization  of  plant  facili- 


ties which  have  been  undertaken  since  the 
war  represent  a  signal  achievement  by 
private  enterprise.  The  trend  of  business 
investment,  however,  has  recendy  been 
downward,  and  its  continued  decline  would 
be  a  cause  for  real  concern. 

There  are  tremendous  business  opportuni- 
ties in  a  growing  economy.  Not  only  are 
there  more  people  in  our  country  every  year, 
needing  food  and  clothing,  homes  and  house- 
hold equipment,  and  all  the  other  goods  and 
services  of  our  bountiful  productive  system. 
Even  more  important,  the  results  of  research 
and  experience  give  us  every  year  new  and 
better  materials  and  productive  methods; 
new  products  are  constandy  being  developed, 
and  whole  new  industries  begun.  All  these 
changes  are  continually  opening  up  new  op- 
portunities for  productive  investment. 

There  are,  in  general,  ample  funds  avail- 
able to  businessmen  who  want  to  expand  or 
build  new  plants,  to  replace  obsolete  equip- 
ment, or  to  extend  their  operations  to  new 
geographic  areas.  Banks  are  in  a  position 
to  provide  funds  for  sound  loans,  and  inter- 
est rates  have  been  declining.  The  flow  of 
institutional  savings,  such  as  insurance 
premiums,  is  at  record  levels.  Corporations 
as  a  whole  are  in  excellent  financial  condi- 
tion. While  there  are  real  difficulties  facing 
some  businessmen,  particularly  those  whose 
enterprises  are  small  or  medium-sized,  and 
those  in  certain  parts  of  the  country,  as  a 
whole  there  is  no  general  financial  bar  to  a 
steady  expansion  of  business  investment. 

In  order  to  reverse  the  present  downward 
trend,  and  to  achieve  the  rising  volume  of 
business  investment  consistent  with  an  ex- 
panding economy,  businessmen  should  grasp 
the  opportunities  which  lie  ahead;  and 
should  help  to  make  the  adjustments  in 
prices  and  incomes  which  will  translate 
potential  markets  into  real  markets.  The 
enterprise  and  imagination  of  private  busi- 


41-355—65 


25 


[6]    Jan.  6 


Public  Papers  of  the  Presidents 


nessmen  will  be  a  crucial  factor  in  achieving 
the  upward  growth  of  which  our  economy 
is  capable. 

While  our  primary  reliance  should  be 
placed  upon  private  initiative,  the  Govern- 
ment can  also  help  to  encourage  a  reversal 
of  the  downward  trend  of  business  invest- 
ment. The  tax  recommendations  I  shall 
transmit  to  the  Congress  in  the  near  future 
will,  in  addition  to  providing  some  net  in- 
crease in  revenue,  propose  certain  changes 
in  our  tax  structure  which  will  make  it  more 
equitable  and  stimulate  business  activity. 

There  is  a  great  need  to  meet  the  problems 
of  small  businessmen  who  cannot  now  obtain 
adequate  financing  on  reasonable  terms. 
New  devices  for  encouraging  private  finan- 
cial institutions  to  furnish  equity  capital  to 
small  and  medium-sized  concerns  are  being 
studied  in  the  Executive  Branch,  and  I  hope 
to  make  recommendations  to  the  Congress 
on  this  subject  during  the  present  session. 
Meanwhile,  I  recommend  that  the  Recon- 
struction Finance  Corporation  be  authorized 
to  increase  the  maximum  maturity  of  its 
business  loans  substantially  above  the  pres- 
ent lo-year  limit. 

Private  housing  investment 

Housing  is  one  of  the  major  fields  in  which 
more  investment  is  required  to  meet  the 
growing  needs  of  our  people.  The  level  of 
housing  construction  in  1949  was  only 
slighdy  higher  than  in  1925,  despite  a  much 
larger  population.  The  relative  lag  of  hous- 
ing technology  and  various  outmoded  prac- 
tices have  resulted  in  a  wide  gap  between 
the  cost  of  producing  good  housing  and  the 
vast  potential  market  for  housing  to  be 
found  in  the  needs  and  desires  of  families  of 
low  and  middle  incomes. 

The  housing  problem  requires  a  vigorous 
combination  of  action  by  private  enterprise 
and  by  all  levels  of  government.  Reduction 
of  housing  costs,  through  technical  progress. 


better  organization,  and  improved  financ- 
ing, is  imperative.  Aside  from  public  sub- 
sidized housing,  further  methods  must  be 
found  to  enlarge  the  flow  of  private  capital 
into  housing.  The  Federal  Government 
should  supplement  the  comprehensive  hous- 
ing legislation,  enacted  last  year,  with  a  new 
program  to  stimulate  the  flow  of  low-cost 
private  money  into  the  development  of  mid- 
dle-income housing,  mainly  through  cooper- 
ative and  other  non-profit  ventures. 

A  high  level  of  residential  construction  is 
an  integral  part  of  a  generally  expanding 
economy,  and  requires  not  only  direct  stimu- 
lation of  investment  but  also  continued 
growth  in  consumer  purchasing  power. 

Rent  control 

While  the  preceding  recommendations 
aim  at  the  fundamental  solution  of  the  hous- 
ing problem,  the  increases  in  rents  which 
would  follow  a  sudden  ending  of  rent  con- 
trol would  still  create  severe  hardships  in  a 
large  number  of  areas.  It  would  lift  the  cost 
of  living,  impair  consumer  buying,  and  com- 
plicate the  problem  of  wage  adjustments. 
Therefore  I  recommend  extension  of  rent 
control  for  another  year. 

Fiscal  policy 

At  the  present  time  the  Federal  Budget 
shows  a  deficit,  principally  because  of  the 
drop  in  incomes  and  employment  in  1949, 
the  untimely  tax  reductions  in  1948,  and  the 
continuing  heavy  demands  of  national  secu- 
rity programs.  As  business  conditions  con- 
tinue to  improve,  we  should  bring  Govern- 
ment receipts  and  expenditures  into  balance, 
and  provide  some  surplus  for  debt  reduction, 
at  the  earliest  date  consistent  with  the  wel- 
fare of  the  country. 

Despite  the  current  deficit,  the  fiscal  posi- 
tion of  the  Federal  Government  is  basically 
strong.  If  the  trend  of  business  continues 
upward  as  it  should.  Federal  revenue  will 


26 


Harry  S.  Truman,  ig$o 


Jan.  6    [6] 


increase.  At  the  same  time,  under  the  poli- 
cies I  am  recommending  in  the  Budget,  Fed- 
eral expenditures  should  decline  somewhat 
over  the  next  few  years.  This  movement 
toward  a  balanced  budget  should  be  acceler- 
ated by  changes  in  our  tax  laws  which  will 
reduce  present  inequities,  stimulate  business 
activity,  and  yield  a  moderate  amount  of 
additional  revenue. 

This  reliance  upon  a  combination  of  three 
factors — an  expanding  economy,  all  reason- 
able reductions  in  expenditures,  and  a  mod- 
erate increase  in  revenues  through  changes 
in  the  tax  laws — is  the  wisest  course  toward 
a  balanced  budget.  In  the  long  run,  the 
Government's  fiscal  position  depends  upon 
the  health  of  the  national  economy.  It  will 
not  be  promoted  by  drastic  slashes  in  ex- 
penditures which  are  essential  to  our  eco- 
nomic growth  and  to  continued  peace. 
Neither  will  it  be  promoted  by  tax  increases 
so  drastic  as  to  stifle  business  activity. 
Either  action  would  impair  our  chances  for 
achieving  our  major  national  and  interna- 
tional objectives  and  would  threaten  further 
recovery. 

Credit  policies 

To  carry  out  the  purposes  of  the  Employ- 
ment Act,  the  Government  should  be 
equipped,  as  a  permanent  matter,  with  the 
minimum  tools  necessary  to  control  the  basic 
factors  of  credit  expansion. 

To  eliminate  the  competitive  disadvantage 
of  Federal  Reserve  membership,  the  author- 
ity of  the  Board  of  Governors  of  the  Federal 
Reserve  System  over  bank  reserve  require- 
ments should  be  revised.  The  Board  should 
have  broader  powers  than  it  now  has  to  in- 
crease bank  reserve  requirements  in  a  period 
of  inflation.  This  would  be  a  protective 
measure  for  the  entire  banking  system,  and 
accordingly  should  be  applicable  to  all  banks 
insured  by  the  Federal  Deposit  Insurance 
Corporation. 


The  Board's  authority  over  instalment 
credit  ended  last  June.  Since  that  time  the 
excessive  relaxation  of  instalment  terms  of- 
fered to  consumers  has  demonstrated  the 
need  for  a  restoration  of  the  Board's 
authority. 

I  have  heretofore  pointed  out  the  need 
for  more  effective  Government  supervision 
over  speculative  trading  on  the  commodity 
exchanges.  I  recommend  that  the  Congress 
grant  more  specific  and  more  adequate  au- 
thority for  this  purpose. 

Farm  policy 

A  generally  pros-perous  economy  will  do 
more  than  all  else  to  help  the  farmer.  As 
the  economy  grows,  it  can  absorb  an  expan- 
sion of  total  agricultural  output,  provided  the 
necessary  shifts  in  amounts  and  types  of  dif- 
ferent products  are  made  to  meet  the  needs 
of  a  changing  peacetime  economy.  Changes 
in  our  farm  policy  are  needed  to  accelerate 
these  shifts  in  production,  to  check  the  de- 
cline in  farm  incomes  which  has  persisted  for 
more  than  a  year,  and  to  accord  to  farmers  a 
fair  share  of  the  fruits  of  prosperity.  These 
basic  objectives  of  farm  policy  call  for  some 
shift  of  emphasis  from  the  support  of  prices 
of  particular  commodities  to  the  support  of 
farm  income. 

There  is  also  need  for  additional  methods 
of  support.  Perishable  products,  in  partic- 
ular, cannot  be  supported  satisfactorily  by 
loans  and  purchases  alone,  and  yet  these  are 
the  products  the  expansion  of  whose  output 
is  most  desirable.  I  therefore  urge  that  sup- 
port through  production  payments  be 
authorized. 

Special  measures  are  needed  to  aid  low- 
income  groups  in  agriculture.  These  in- 
clude measures  to  provide  credit  and  man- 
agement aids  to  low-income  farmers  to  help 
them  enlarge  and  improve  their  farms. 
They  include  programs  to  provide  rural 
electrification,  rural  telephones,  better  farm 


27 


[6]    Jan.  6 


Public  Papers  of  the  Presidents 


housing,  and  improved  opportunity  for 
medical  care.  In  addition,  we  must  continue 
to  improve  the  education  of  our  farm  youth 
not  only  to  make  them  more  efficient  farmers, 
but  also  to  help  some  of  the  underemployed 
people  in  agriculture  find  useful  work  in 
other  occupations. 

Increased  emphasis  should  be  given  to  en- 
couragement of  types  of  farming  which  are 
most  needed.  Research  and  education,  and 
conservation  and  credit  programs,  as  well  as 
the  Government's  support  of  farm  prices 
and  farm  incomes,  should  be  directed  toward 
this  end. 

Developmental  programs  and  community 
services 

After  the  restraints  imposed  by  war  and 
by  postwar  inflation.  Federal  programs  for 
resource  development,  transportation,  edu- 
cation, and  health  are  just  beginning  to  ad- 
just to  the  needs  of  an  expanding  national 
economy.  Even  now,  the  requirements  of 
national  security,  international  aid,  and 
veterans'  adjustments  are  so  urgent  and  so 
large  that  progress  in  developmental  pro- 
grams and  community  services  must  neces- 
sarily be  limited  to  gradual  advancement  at 
a  rate  below  the  genuine  need. 

Nevertheless,  we  are  continuing  to  expand 
our  investment  in  the  development  of  our 
rivers  for  flood  control,  navigation,  reclama- 
tion, and  electric  power,  in  the  expansion  of 
our  highways,  and  in  the  development  of 
atomic  energy.  I  again  urge  early  authori- 
zation of  the  St.  Lawrence  seaway  and  power 
project,  which  should  be  started  as  soon  as 
plans  can  be  completed.  In  most  of  our 
major  river  valleys  we  do  not  have  satis- 
factory means  for  preparing  integrated 
programs  of  development.  I  have  already 
recommended,  and  I  again  urge,  that  the 
Congress  authorize  the  consolidation  of  a 
number  of  Federal  activities  in  the  Pacific 


Northwest  into  a  Columbia  Valley  Ad- 
ministration. 

Present  deficiencies  in  education  and 
health  are  so  compelling  that  I  repeat  my 
recommendation  for  new  programs.  Ex- 
pansion of  public  health  services,  and  of 
enrollments  in  schools  of  medicine,  nursing, 
dentistry,  and  public  health,  should  be 
started  now.  The  growing  number  of  chil- 
dren of  school  age  cannot  be  permitted  to 
delay  their  education.  I  therefore  urge  the 
prompt  enactment  of  aid  to  elementary  and 
secondary  education,  and  the  provision  of 
funds  for  a  survey  to  determine  the  extent 
of  the  need  for  school  construction.  There 
should  also  be  authorized  a  limited  program 
to  assist  capable  young  people  who  are  now 
financially  unable  to  secure  the  higher  educa- 
tion essential  to  the  full  development  of  their 
talents. 

Many  of  the  existing  procurement,  con- 
struction, and  loan  programs  of  the  Federal 
Government  can  be  adapted,  to  some  extent, 
to  alleviate  serious  unemployment  in  partic- 
ular local  areas.  The  program  initiated  for 
this  purpose  in  the  summer  of  1949  has 
shown  some  good  results  and  it  will  be  con- 
tinued. It  is  evident,  however,  that  some 
localities  are  faced  with  long-term  rather 
than  temporary  difficulties  and  that  effective 
programs  to  provide  permanent  solutions 
need  to  be  worked  out.  The  Federal  Gov- 
ernment will  continue  to  use  all  available 
resources  for  the  aid  of  such  distressed  areas 
and,  cooperating  with  State  and  local  agen- 
cies and  private  groups,  will  assist  in  pre- 
paring programs  adjusted  to  the  long-range 
problems  and  opportunities  of  those  areas. 

Social  security 

In  our  growing  economy,  there  can  be  no 
excuse  for  failure  to  develop  an  adequate 
system  for  protecting  our  citizens  against 
economic  insecurity.    As  we  produce  more. 


28 


Harry  S.  Truman,  ig^o 


Jan.  6    [6] 


we  can  and  should  make  more  adequate  pro- 
vision for  the  aged,  those  who  cannot  find 
work,  and  others  in  our  society  who  are  in 
need. 

I  urge  the  Congress  to  act  promptly  on  the 
recommendations  I  have  made  for  the  ex- 
tension and  improvement  of  social  security. 
We  must  move  rapidly  toward  a  compre- 
hensive social  insurance  system  protecting 
nearly  all  workers — including  those  em- 
ployed in  farming — ^and  their  families 
against  the  risks  of  old  age,  unemployment, 
disability,  death  of  the  family  wage-earner, 
and  illness.  The  costs  of  such  a  system, 
when  measured  against  the  growing  output 
of  our  economv,  are  well  within  our  capacity 
to  pay. 

The  present  programs  of  social  security  are 
grossly  inadequate.  Because  of  the  limited 
coverage  of  the  present  law,  and  the  exhaus- 
tion of  benefits  by  many  workers,  one-third 
of  the  unemployed  are  now  receiving  no 
unemployment  insurance  benefits,  and  in 
some  areas  the  proportion  approaches  two- 
thirds.  Many  communities  provide  no  pub- 
lic funds  for  the  relief  of  jobless  workers 
and  their  families.  There  are  also  several 
million  disabled  workers,  many  with  fami- 
lies to  support,  who  are  not  eligible  for  public 
insurance  benefits.  In  some  places,  they  do 
not  even  receive  public  relief.  Only  650,000 
of  the  millions  of  bereaved  or  broken  fami- 
lies with  very  low  incomes  are  receiving 
survivors  insurance.  Only  30  percent  of  the 
aged  population  are  eligible  for  social  insur- 
ance benefits,  which  are  so  meager  that  few 
can  retire  voluntarily.  Needed  medical  care 
is  denied  to  millions  of  our  citizens  because 
they  have  no  access  to  systematic  and  ade- 
quate methods  of  meeting  the  cost. 

The  current  inadequacy  of  the  social  in- 
surance programs  is  sharply  reflected  in  the 
disproportionate  load  now  being  borne  by 
public     assistance     programs.       Increasing 


numbers  of  the  aged,  the  disabled,  and  the 
unemployed  have  been  forced  to  resort  to 
public  assistance.  This  distorts  the  original 
intent  of  the  Social  Security  Act  that  people 
are  entided  to  security  as  a  matter  of  right. 
The  burden  of  public  assistance  is  straining 
the  fiscal  capacities  of  State  and  local  govern- 
ments. While  enactment  of  proposed  social 
insurance  programs  will  alleviate  this  prob- 
lem in  the  future,  provision  must  be  made 
for  dealing  with  the  problem  in  the  mean- 
time. I  therefore  urge  enactment  of  the 
proposols  which  I  submitted  to  the  Congress 
last  spring  for  the  extension  and  improve- 
ment of  the  program  of  Federal  grants  to 
States  for  public  assistance. 

International  economic  programs 

We  are  now  in  a  transitional  stage  in  the 
development  of  our  international  economic 
policies.  Our  short-run  programs  of  aid  to 
friendly  countries  abroad  have  begun  to  bear 
fruit  in  increased  production,  expanding 
trade,  and  rising  living  standards.  At  the 
same  time,  the  long-range  nature  of  the 
problems  of  world  production  and  trade  has 
emerged  more  clearly,  and  the  need  for  the 
United  States  to  play  a  continuing  role  in 
world  development  through  capital  and  tech- 
nical assistance  has  become  evident. 

The  progress  already  made  toward  achiev- 
ing the  objectives  of  the  European  recovery 
program  and  of  other  short-run  aid  pro- 
grams should  prompt  the  continuation  of 
these  programs  on  a  basis  commensurate 
with  need.  To  cripple  them  now  would 
imperil  past  progress  and  risk  the  waste  of 
expenditures  already  made.  I  recommend 
that  these  programs  be  extended  on  a  scale 
sufficient  to  accomplish  the  purposes  for 
which  they  were  established. 

In  the  years  ahead,  we  must  lay  increasing 
emphasis  upon  long-run  international  eco- 
nomic programs.    We  need  to  move  vigor- 


29 


[6]    Jan.  6 


Public  Papers  of  the  Presidents 


ously  toward  a  world-wide  increase  of  inter- 
national trade.  This  will  result  in  larger 
imports  into  our  country,  which  will  assist 
other  countries  to  earn  the  dollars  they  need, 
and  will  at  the  same  time  increase  our  own 
standard  of  living.  An  immediate  step  in 
this  direction  is  to  approve  promptly  the 
proposed  Charter  for  the  International  Trade 
Organization,  which  has  been  negotiated  to 
establish  a  code  of  fair  trade  practice  and  a 
means  for  steadily  improving  international 
commercial  relations. 

Even  the  maximum  feasible  reduction  of 
barriers  to  world  trade  would  not  alone  make 
possible  the  continued  increases  in  world 
production  and  living  standards  which  are 
essential  to  world  peace.  Such  reductions  are 
of  litde  immediate  benefit  to  the  underde- 
veloped areas  of  the  world,  which  cannot 
produce  enough  to  achieve  an  export  surplus 
and  build  up  their  productive  capital.  These 
areas  urgendy  need  improved  technical 
knowledge  and  increased  capital  investment. 
The  aim  of  the  Point  Four  program  for 
assistance  to  underdeveloped  countries  is  to 
help  meet  these  needs. 

To  make  the  most  effective  use  of  invested 
capital,  underdeveloped  countries  require 
technical  assitance.  Hearings  have  already 
been  held  by  the  Congress  on  the  legislation 
I  have  recommended  to  stimulate  the  inter- 
change of  technical  assistance.  I  urge  action 
on  this  proposal  as  soon  as  possible. 

The  United  States  has  sufficient  productive 
strength  to  provide  capital  for  investment  in 
productive  developments  abroad.  In  order 
to  encourage  the  private  investment  of 
United  States  funds  abroad,  I  urge  the  Con- 
gress to  act  promptly  on  the  legislation  now 
before  it  to  authorize  the  Export-Import 
Bank  to  guarantee  such  investments  against 
certain  risks  peculiar  to  foreign  investment. 
Through  the  negotiation  of  treaties,  the  Gov- 
ernment is  moving  to  improve  conditions 


for  investment  abroad  and  assure  protection 
for  the  legitimate  interests  of  United  States 
investors.  It  will  also  continue  to  be  the 
policy  of  the  Government  to  encourage 
American  investment  abroad  only  when  it  is 
carried  on  in  a  way  that  protects  the  interests 
of  the  people  in  the  foreign  countries  con- 
cerned. 

I  recommend  also  that  certain  provisions 
of  the  tax  laws  governing  the  taxation  of 
income  from  foreign  investments  be  revised 
in  order  to  stimulate  the  flow  of  American 
capital  abroad. 

In  addition  to  its  direct  contribution  to  in- 
creased production,  the  technical  assistance 
program  should  prepare  the  way  for,  and 
stimulate  the  preparation  of,  concrete  de- 
velopment projects,  on  the  basis  of  which  an 
increasing  volume  of  private  and  public 
investment  can  be  made.  It  is  unlikely  that 
private  funds,  including  those  invested 
through  the  International  Bank,  and  the 
present  resources  of  the  Export-Import  Bank, 
will  be  sufficient  to  meet  the  need  for  invest- 
ment abroad.  It  will  probably  become  nec- 
essary at  a  later  time  to  increase  the  lending 
authority  of  the  Export-Import  Bank. 

SUMMARY  OF  LEGISLATIVE  RECOMMENDATIONS 

I  summarize  below  the  legislative  recom- 
mendations contained  in  this  Economic  Re- 
port, and  urge  that  the  Congress  enact  them 
into  law: 

1.  Make  some  revisions  in  the  tax  struc- 
ture to  reduce  present  inequities,  stimulate 
business  activity,  and  yield  a  moderate 
amount  of  net  additional  revenue.  My  spe- 
cific recommendations  on  taxes  will  be 
transmitted  to  the  Congress  at  an  early  date. 

2.  Enact  a  new  program  to  stimulate  pri- 
vate investment  in  housing  for  middle-in- 
come families. 

3.  Substantially   increase   the   maximum 


30 


Harry  S.  Truman,  igp 


Jan.  6    [6] 


maturity  period  for  business  loans  made  by 
the  Reconstruction  Finance  Corporation. 

4.  Improve  the  protection  of  farm  incomes 
and  encourage  needed  shifts  in  farm  produc- 
tion, by  authorization  of  production  pay- 
ments and  other  changes  in  present  legisla- 
tion. 

5.  Establish  a  Columbia  Valley  Adminis- 
tration, and  authorize  the  St.  Lawrence 
seaway  and  power  project. 

6.  Provide  for  Federal  aid  to  elementary 
and  secondary  education,  for  a  limited  pro- 
gram of  aid  in  support  of  higher  education 
for  capable  students,  for  aid  to  medical  edu- 
cation, for  the  improvement  of  local  public 
health  services,  and  for  grants  to  States  for 
surveys  of  the  need  for  school  construction. 

7.  Extend  and  liberalize  the  social  security 
structure  by  improving  old-age,  survivors, 
and  unemployment  insurance,  enacting  dis- 
ability and  health  insurance,  and  expanding 
Federal  grants-in-aid  to  States  for  public 
assistance. 

8.  Extend  rent  control  for  another  year. 

9.  Continue  the  foreign  recovery  programs 
on  a  basis  commensurable  with  need. 

10.  Approve  the  Charter  for  the  Interna- 
tional Trade  Organization. 

11.  Authorize  the  program  for  technical 
assistance  to  underdeveloped  countries,  and 
for  guarantees  by  the  Export-Import  Bank 
against  risks  peculiar  to  private  investment 
abroad;  and  revise  certain  provisions  in  the 
tax  laws  governing  the  taxation  of  income 
from  foreign  investments. 

12.  Provide  additional  authority  over 
banking  reserves  to  the  Board  of  Governors 
of  the  Federal  Reserve  System;  extend  that 
authority  to  all  banks  insured  by  the  Federal 
Deposit  Insurance  Corporation;  and  restore 
the  Board's  authority  to  regulate  consumer 


credit.    Provide  authority  to  regulate  specu- 
lation on  the  commodity  exchanges. 
***** 

In  the  Message  on  the  State  of  the  Union, 
I  have  stressed  the  fateful  role  which  the 
United  States  has  come  to  occupy  in  the 
progress  of  human  destiny.  Our  responsi- 
bilities are  already  determined  by  the  course 
of  world  events.  But  how  well  we  measure 
up  to  these  responsibilities  remains  in  our 
own  hands. 

Moral  leadership  comes  first,  as  we  seek 
to  inspire  free  men  everywhere  with  con- 
fidence in  their  cause.  But  history  proves 
that  many  great  moral  purposes  have  failed 
or  faltered  because  the  material  strength  to 
support  them  was  lacking.  The  economic 
power  of  the  United  States,  at  its  full  poten- 
tial, is  the  keystone  of  this  support. 

The  Congress  foresaw  this  when  it  gave 
our  national  economic  policy  the  degree  of 
central  significance  accorded  to  it  under  the 
Employment  Act  of  1946.  As  the  delibera- 
tions of  the  United  Nations  demonstrate, 
other  nations  recognize  the  overwhelming 
importance  to  the  cause  of  freedom  of  wise 
economic  policies  and  full  employment. 

Our  economic  situation  today  is  good,  and 
it  can  be  better.  The  lessons  of  the  past  and 
the  magnificent  challenge  of  the  future  con- 
tinue to  spur  us  on.  For  all  to  thrive  and 
prosper  together,  all  must  work  together — 
with  mutual  understanding  and  common 
purposes.  That  is  the  spirit  of  our  democ- 
racy. That  is  the  spirit  in  which  I  transmit 
these  recommendations  to  the  Congress,  and 
to  all  those  whose  actions  affect  our  economy. 
Harry  S.  Truman 

note:  The  message  and  the  complete  report  are 
published  in  "The  Economic  Report  of  the  President 
Transmitted  to  the  Congress,  January  6,  1950" 
(Government  Printing  Office,  1950,  194  pp.)» 


31 


[7]    Jan.  6 


Public  Papers  of  the  Presidents 


7    Exchange  of  Messages  With  Michael,  Orthodox  Archbishop  of 
North  and  South  America.    ]anuary  6,  1950 


IN  RESPONSE  to  your  appeal,  I  am  glad 
to  assure  you  that  the  United  States  will 
continue  to  give  the  utmost  support  to  the 
efforts  of  the  United  Nations  and  the  inter- 
national Red  Cross  organizations  to  bring 
about  the  return  to  Greece  of  the  thousands 
of  children  removed  from  that  country  to 
eastern  Europe  during  the  course  of  the 
recent  guerrilla  v^arfare.  The  people  of  the 
United  States,  and  particularly  the  mothers 
of  the  United  States,  are  deeply  sensitive 
to  the  plight  of  these  children  and  their 
bereaved  families.  We  pray  that  the  Gov- 
ernments of  the  countries  harboring  these 
children  v^ill  be  moved  by  a  spirit  of  broad 
humanitarianism  to  cooperate  in  fulfilling 
the  unanimous  desire  of  the  United  Nations 


General  Assembly  that  these  children  be 
promptly  restored  to  their  homes. 

Harry  S.  Truman 

note:  Archbishop  Michaers  message,  dated  Decem- 
ber 28, 1949,  follows: 

Just  from  Greece  as  the  new  spiritual  leader  of 
the  Greek-American  Orthodox  people  in  your  and 
our  prosperous  and  beloved  country,  I  make  today 
an  appeal  to  the  civilized  humanity  and  generous 
American  people  for  the  return  to  their  parents  of 
the  abducted  Greek  children.  Our  Orthodox  people 
here  and  in  Greece  who  are  so  grateful  to  you  and 
to  the  American  people  for  all  given  assistance  will 
count  very  much  on  your  personality.  Will  you 
please  exercise  all  your  high  influence  upon  the 
members  of  the  United  Nations  so  that  these  Greek 
children  are  returned  to  their  homes. 

Michael, 
Archbishop  of  North  and  South  America 


8    The  President's  News  Conference  on  the  Budget. 
January  7,  1950 


[As  the  conference  opened,  Charles  G.  Ross,  Press 
Secretary  to  the  President,  made  the  following  state- 
ment: "As  you  all  kpow,  this  seminar  is  just  for  your 
guidance,  for  hack^round  purposes,  and  not  for 
attribution.  And  when  you  as\  your  questions,  will 
you  please  always  refer  to  the  page  number  of  the 
Message."'] 

THE  PRESIDENT,  [i.]  I  would  like  to  tell 
you  first  about  this  group  of  charts  here. 
Has  everybody  got  one  of  these  charts? 

If  you  will  notice,  the  first  chart  points 
out  the  receipts  and  expenditures,  where  they 
come  from  and  where  they  go.  Then  there 
is  this  chart  here,  which  shows  the  reverse 
of  it,  the  way  the  distribution  of  expenditures 
is  made — since  1939 — which  is  exacdy  re- 
verse— very  informative.  And  the  next  one 
shows  where  the  money  comes  from  and 
where  it  goes;  and  the  next  one  is  on  the 
same  line.    That  last  one  is  the  big  one — 


where  I  was  pointing  to  in  the  pictures  they 
just  took — it  shows  what  happens  in  an 
emergency  like  we  have  been  through  since 
1938.  And  the  last  end  of  that  chart  shows 
what  we  are  trying  to  do  to  keep  from  get- 
ting that  big  a  hump  again. 

I  want  to  call  your  attention  particularly  to 
part  3  in  this  green  book,  which  gives  you 
some  idea  of  the  Government's  assets  and 
investments  made  over  the  years,  which  has 
not  before  been  pointed  out.  All  these 
people  that  yell  about  expenditures  don't 
understand  that  a  tremendous  amount  of  the 
expenditures  we  make  is  an  investment  in 
the  United  States  of  America,  and  if  those 
investments  were  not  made  we  would  not  be 
on  the  income  basis  that  we  are  on  now,  so 
far  as  the  individual  and  the  business  of  the 
country  is  concerned. 


32 


Harry  S.  Truman,  ig^o 


Jan.  7    [8] 


I  think  those  are  all  the  preliminary  re- 
marks that  I  want  to  make. 

Mr.  Ross:  Mr.  President,  may  I  say  again 
that  these  remarks  are  for  guidance  and  for 
background  purposes,  not  for  attribution, 
which  is  customary  at  these  seminars. 

THE  PRESIDENT.  He  wauts  me  to  impress 
on  you  that  these  statements  that  I  make  are 
for  guidance  and  background  and  not  for 
personal  attribution  to  the  President.  I  think 
all  of  you  understand  that,  particularly  those 
who  have  been  here  before. 

Mr.  Pace:  You  might  also  ask  that  when 
they  ask  a  question  that  they  refer  to  the  page 
number. 

THE  PRESIDENT.  The  Budget  Director 
wants  the  page  number  referred  to  when 
you  ask  a  question,  and  it  will  make  it  easier 
for  us  to  answer.    You  can  proceed  now. 

[2.]  Q.  Mr.  President,  on  page  M78 
(p.  99)^  you  have  a  reference  to  Federal  re- 
insurance for  unemployment  compensation, 
I  believe  the  amount  is  about  $i2i/2  million. 
Does  that  represent  an  amount  of  money  to 
be  actually  made  available  for  payment  of 
unemployment  compensation  benefits? 

THE  PRESIDENT.  The  Budget  Director  will 
answer  that.  I  wish  you  would  stand  up 
when  you  ask  your  questions  so  that  we  can 
hear  you  better. 

Mr.  Pace:  Could  you  repeat  that  question, 
please? 

Q.  Yes.  On  page  M77,  M78,  M85,  and 
A83  (pp.  99,  100,  105)  you  will  find  refer- 
ences to  a  Federal  reinsurance  program  for 
unemployment  compensation,  part  of  that 
administration,  part  of  it  compensation.  I 
wonder  whether  the  bulk  of  that  is  money 


^Page  references  in  parentheses,  throughout  this 
news  conference,  indicate  where  the  subjects  re- 
ferred to  may  be  found  in  the  Budget  Message  as 
printed  in  Item  9,  below;  all  other  page  references 
correspond  to  the  page  numbers  in  the  Budget  as 
published  in  House  Document  405  (8ist  Cong.,  2d 
sess.). 


actually  to  be  made  available  to  pay  unem- 
ployment compensation  benefits? 

Mr.  Pace:  The  answer  to  that  is  it  would 
be,  if  the  States  need  it. 

Q.  It  wouldn't? 

Mr.  Pace:  Would  be. 

Q.  In  that  answer,  how  can  you  tell  me 
how  much  is  administration  and  how  much 
for  benefits? 

Mr.  Pace:  Almost  entirely  for  benefits. 

[3.]  Q.  Now,  you  mention  that  there  are 
one  or  two  States  where  the  reserve  may  be 
exhausted  by  next  fall,  or  shortly  thereafter. 
Would  you  name  those  States? 

Mr.  Pace:  We  can  give  you  those  over 
in  the  office,  when  you  come  over. 

Q.  Thank  you. 

[4.]  Q.  Mr.  President,  on  page  M21 
(p.  57),  under  assistance  to  China,  you  have 
got  nothing  down  for  1950,  and,  if  I  have 
got  the  right  program,  I  think  Congress 
voted  75  million.    Is  this  an  indication 

THE  PRESIDENT.  Yes,  I  have  still  got  that 
$75  million  locked  up  in  the  drawer  of  my 
desk,  and  it  is  going  to  stay  there. 
[Laughter] 

John  ^  says  he  might  break  the  desk  down. 

[5.]  Q.  Mr.  President,  I  would  like  to 
ask  one  for  the  record.  How  much  is  a 
moderate  tax  increase? 

THE  PRESIDENT.  I  wiU  auswer  that  ques- 
tion in  the  tax  message,  in  language  so  that 
you  can  understand  it  without  a  bit  of 
trouble. 

Q.  Mr.  President,  when  does  the  tax  mes- 
sage go  to  Congress? 

THE  PRESIDENT.  We  are  preparing  it  right 
now.    I  hope  it  will  be  ready  in  a  few  days. 

Q.  Will  it  go  Monday? 

THE   PRESIDENT.   I    Cau't — UO,    it   WOu't   gO 

Monday.    This  message  only  will  go  down 
on  Monday. 
Q.  What  I  mean  is,  we  are  writing  stories 

^  Secretary  of  the  Treasury  John  W.  Snyder. 


41-355—65- 


33 


[8]    Jan.  7 


Public  Papers  of  the  Presidents 


today  on  the  budget.  Will  the  tax  message 
come  along  Monday  to  change  the  lead  for 
the  story? 

THE  PRESIDENT.  No,  no.  You  Spend  your 
time  on  the  budget,  and  there  will  be  plenty 
of  time  to  work  on  the  tax  message.  We 
are  going  to  have  it  ready  just  as  prompdy 
as  we  can.^ 

[6.]  Q.  Mr.  President,  on  occupied  re- 
lief— ^ERP — ^how  much  is  ERP  in  this  3,250,- 
000 — ^3  billion — that  is,  M21  (p.  57)? 

Mr.  Pace:  The  answer  to  that  is  that  the 
German  relief  is  included  in  ERP  this  year. 
Last  year  it  ran  approximately  400  to  450 
million.  This  year,  then,  would  obviously 
run  slightly  less  than  that  if  it  were  set  out 
as  a  separate  category;  but  it  is  included  in 
ERP  operations  this  year. 

Q.  That  would  reduce  ERP  about  2 
billion,  eight? 

Mr.  Pace:  If  it  were  set  out  independ- 
ently— I  can't  specify  exactly  how  much  goes 
for  Germany  because  there  would  be  some 
reduction  last  year.  If  you  used  last  year's 
figures  it  would  make  it  about  that  amount, 
but  that  is  not  an  exact  figure  for  this  coming 
year. 

Q.  What  is  the  correct  figure,  then,  to  use 
for  the  amount  to  be  asked  for,  for  ERP  for 
the  economic 

THE  PRESIDENT.  It  is  Set  out  right  there. 

Mr.  Pace:  The  figure  set  out  here,  because 
that  is  one  of  ERP's  responsibilities  this  year. 
In  other  words,  if  you  were  going  to  show 
that  Germany  was  actually  included  in  ERP, 
you  could  state  what  part  of  the  actual  figure 
of  ERP  is  the  one  set  out  here. 

[7.]  Q.  Mr.  President,  on  page  M36  (p. 
68),  the  last  sentence  of  the  next  to  the  last 
paragraph  is  very  interesting:  "We  should 
provide  through  the  veterans'  programs 
only  for  the  special  and  unique  needs  of  vet- 

MtemiS. 


erans  arising  direcdy  from  military  service." 
Can  that  be  taken  as  a  recommendation  to 
repeal  laws  concerning  nonservice-connected 
disabilities? 

THE  PRESIDENT.  That  sets  out  exactly  what 
it  means  right  there. 

Q.  That  would  very  greatly  reduce  vet- 
erans administration  costs? 

THE  PRESIDENT.  Not  Very  greatly.  It 
would  reduce  it,  to  some  extent,  but  it  would 
prevent  it  from  piling  up  at  a  terrific  rate, 
which  we  anticipate  later. 

Q.  Would  also  relieve  largely  the  pressure 
on  veterans  hospitals  ? 

THE  PRESIDENT.  Yes,  to  some  extent  it 
would. 

Q.  Thank  you,  sir. 

Q.  On  that  very  point,  is  this  not  an 
argument  against  general  pension  legisla- 
tion? 

THE  PRESIDENT.  Yes.  Yes,  that  is  exacdy 
what  it  is  for.  That  is  exacdy  what  it  is  for. 
We  would  all  be  paying  pensions  to  our- 
selves if  this  thing  gets  spread  out  too  thin. 
The  Budget  Director  calls  attention  to  the 
fact  that  it  has  been  the  policy  all  along,  that 
sections  of  the  GI  bill  of  rights  legislation 
to  stop — heads  off  the  general  pension  plan. 
I  think  it  has  done  a  remarkable  job  for  the 
returned  veterans,  and  I  think  they  all  think 
so,  too. 

[8.]  Q.  Mr.  President,  this— the  ques- 
tion of  policy,  do  you  have  any  personal 
objection,  or  any  administrative  objection,  to 
Congress  handling  your  Budget  in  a  single 
appropriation  bill? 

THE  PRESIDENT.  The  Cougress  has  been 
discussing  that  matter  for  quite  some  time. 
I  would  be  perfccdy  happy  if  they  would 
take  this  budget  and  pass  it  as  a  whole,  just 
like  it  is.     [Laughter'] 

Q.  Mr.  President,  that  was  hardly  the  in- 
tent of  the  question. 


34 


Harry  S.  Truman,  ig§o 


Jan.  7    [8] 


THE  PRESIDENT.  I  didn't  Understand  you? 

Q.  That  was  hardly  the  intent  of  the  ques- 
tion.    [More  laughter] 

Q.  Mr.  President,  you  said  you  were  going 
to  submit  about  $7  biUion  in  estimates  later, 
and  about  $33  billion  at  this  time.  I  think 
that  is 

THE  PRESIDENT.  No,  this  is  the  budget 
right  here  before  you.  This  is  the  budget 
we — that  we  are  submitting.  This  is  the 
budget  document  here  that  goes  to  Congress. 
I  don't  think  there  is  anything  in  addition  to 
this  green  book. 

Q.  My  question  was,  how  would  that  af- 
fect the  single  package  appropriation  bill? 

THE  PRESIDENT.  I  dou't  think  it  would 
affect  it  at  all.  I  don't  think  it  would  affect 
it  at  all.  That  is  a  matter  for  Congress  itself 
to  decide.  I  can't  tell  them  how  to  handle 
the  budget.  All  I  am  interested  in  is  that 
they  don't  treat  it  as  they  did  last  year.  A 
lot  of  them  have  to  be  elected  this  year  and 
they  had  better  get  that  appropriation  bill 
through  in  a  hurry. 

[9.]  Q.  Mr.  President,  will  you  accept  a 
single  package  bill  with  the  item  veto? 

THE  PRESIDENT.  I  havc  always  been  in 
favor  of  the  item  veto.  It  requires,  I  under- 
stand, a  constitutional  amendment  to  have 
an  item  veto,  and  I  don't  think  there  is  any 
possible  chance  of  getting  that  in  this  budget, 
or  any  other  one  for  several  years  to  come. 

[10.]  Q.  Mr.  President,  getting  back  to 
the  overall  figure,  please,  on  page  M5 
(p.  45) — the  digest  figures  for  the  195 1 
budget. 

THE  PRESIDENT.   YeS? 

Q.  42,439 — ^that  is  existing  and  proposed 
legislation? 

THE  PRESIDENT.  That's  right.  That  is  the 
whole  thing,  existing  and  proposed  legisla- 
tion. 

Q.  That,  of  course,  does  not  include  the 


social  security  collections  and  payments? 

THE  PRESIDENT.  Oh  no,  that  is  a  separate 
account. 

Mr.  Pace:  It  does  include  railroad  retire- 
ment. 

Q.  It  does  include  it? 

Mr.  Pace:  It  does  include  railroad  retire- 
ment.   That  is  included  in  the  trust  funds. 

Q.  Then  the  37.3  of  revenue  is  without 
any  anticipated  change  in  the — ^without 
change  in  the  existing 

THE  PRESIDENT.  That  is  cotrect. 

Mr.  Pace:  That  is  correct. 

THE  PRESIDENT.   What  is  it? 

[11.]  Q.  Mr.  President,  on  page  M43 
(p.  73),  in  relation  to  social  security,  you 
say,  "The  greater  part  of  them  would  be 
financed  through  special  taxes.  .  .  ."  What 
kind  of  special  taxes  do  you  mean? 

Mr.  Pace:  Payroll. 

THE  PRESIDENT.  Payroll  taxes,  that  is  what 
is  referred  to. 

Q.  Payroll  taxes  ? 

THE  PRESIDENT.  That's  right. 

Q.  Mr.  President,  page  M48  (p.  77),  you 
propose  that  a  payroll  tax  of  one-fourth  of  i 
percent  be  placed  on  employers  and  em- 
ployees effective  January  i,  1951.  Does  the 
receipts  side  of  the  cash  budget  reflect  that 
increase,  and  the  increase  in  health 
insurance? 

THE  PRESIDENT.  Budget  wiU  have  to 
answer  that. 

Mr.  Pace:  The  answer  to  that  is  that  it 
would  be  reflected  in  the  cash  budget,  but 
would  not  be  reflected  in  this  budget,  which 
is  known  as  the  conventional  type  budget. 

Q.  But  it  is  reflected  in  the  cash  budget 
that  you  have  in  the  statement? 

Mr.  Pace:  That  is  correct,  yes.  That  is 
correct. 

[12.]  Q.  Mr.  President,  on  pages  M68 
and  M69  (pp.  92,  93),  there  is  a  discussion 


35 


[8]    Jan.  7 


Public  Papers  of  the  Presidents 


of  the  high  subsidies  for  the  United  States 
Maritime  Commission  for  shipbuilding. 
My  question  is  whether  the  issue,  or  whether 
the  subject  of  the  effect  of  the  deflation  of 
British  currency  on  shipbuilding  and  ship- 
building subsidies  was  considered  in  sum- 
ming up  this  question? 

THE  PRESIDENT.  We  work  in  American 
dollars  entirely. 

[i3«]  Q'  ^^'  President,  on  that — right 
across  the  page,  M69  (p.  93) — you  have  got 
proposed  legislation  for  the  postal  deficit, 
395  minus.  Apparently  that  refers  to  legis- 
lation for  increasing  the  postal  receipts  on 
mail,  not  subsidies? 

THE  PRESIDENT.  That's  right. 

Q.  Have  they  worked  that  out  yet? 

Q.  It  was  250.  You  said  that  was  not 
enough. 

THE  PRESIDENT.  No,  it  is  not  euough.  It 
is  increasing  all  the  time — all  the  time. 

Q.  Have  you  worked  that  out? 

THE  PRESIDENT.  The  Postmaster  General, 
I  think,  has  the  figure  all  ready  to  send  to  the 
Congress. 

Mr.  Pace:  I  think  he  is  working  on  it  at 
the  present  time. 

THE  PRESIDENT.  The  Budget  Director  says 
that  the  Postmaster  General  is  working  on  it 
at  the  present  time,  but  I  have  discussed  the 
matter  with  the  Postmaster  General  and  I 
know  that  he  is  going  to  ask  for  what  it  takes 
to  meet  that  deficit. 

Q.  Have  you  talked  to  the  congressional 
leaders  about  it? 

THE  PRESIDENT.  Yes,  I  have.  And  I  have 
also  talked  to  a  number  of  newspapermen, 
and  some  commentator  fellows,  and  fellows 
who  have  the  right  idea  think  that  it  ought 
not  to  be  a  subsidy.  The  thing  has  run  at 
nearly  $3  billion  over  the  last  20  years. 
Those  fellows  using  the  subsidies — that's  all 
right  for  them — ^but  they  yell  about  some 
other  subsidies.  I  think  they,  too,  ought  to 
be  met.     [  Laugh  ter  ] 


[14.]  Q.  Mr.  President,  this  is  probably 
a  question  for  the  Budget  Director:  what  is 
the  cash  budget? 

THE  PRESIDENT.  We  have  that  argument 
every  year.  The  cash  budget  is  what — the 
cash  payments 

Q.  I  mean  the  figures. 

THE  PRESIDENT. that  the  Government 

has  to  pay  out — ^that  the  Government  has  to 
pay  out  over  previous  years. 

Q.  You  didn't  understand  my  question 
properly. 

THE  PRESIDENT.  All  right,  give  it  to  him. 

Q.  The  overall  figure,  outgo  and  income? 

THE  PRESIDENT.  All  right,  we  will  give  it 
to  you. 

Mr.  Pace:  If  they  will  go  on  with  the 
questions 

THE  PRESIDENT.  Go  ahead  with  the  ques- 
tions. As  soon  as  we  get  the  figures  we 
will  come  back  and  answer  you. 

[15.]  Q.  M85  (p.  105)— Inland  Water- 
ways Corporation — $3  million — I  can't  find 
it  in  the  big  budget. 

THE  PRESIDENT.  It  must  be  in  there. 

Q.  No,  it  isn't — ^550  in  the  big  budget. 
It  is  apparendy  new  legislation? 

THE  PRESIDENT.    On  M85  ? 

Q.  Under  Transportation  and  Communi- 
cation— Inland  Waterways  Corporation — 
estimated  expenditures — ^$3  million? 

Mr.  Lawton:  That  is  to  raise  capital  stock. 

Q.  What  are  you  going  to  do  with  it? 

Mr.  Lawton:  Improve  facilities  of  the  In- 
land Waterways  Corporation. 

Q.  That  has  not  been  approved  by  Con- 
gress— not  authorized? 

Mr.  Lawton:  Not  yet. 

Q.  It  has  not  been  authorized? 

Mr.  Lawton:  No. 

THE  PRESIDENT.  I  don't  think  it  has  been 
authorized,  but  we  are  asking  for  it  here. 

[16.]  Mr.  Pace:  The  answer  to  the  previ- 
ous question,  Mr.  President,  is  that  the 
whole  figure  is  set  out  on  page  A117 — ^the 


36 


Harry  S.  Truman,  ig^o 


Jan.  7    [8] 


whole  summary  and  supporting  tables — on 
table  13  on  page  A117  of  the  cash  budget. 
That  will  answer  not  only  your  final  ques- 
tion but  any  detailed  questions,  on  page 
A117. 

Q.  $45  billion  against  $43  billion? 

Mr.  Pace:  That's  right. 

Mr.Lawton:  That's  correct. 

[17.]  Q.  Mr.  President,  on  page  M85 
(p.  105),  on  your  proposed  legislation  there  is 
an  item  of  half  a  million  dollars  for  research 
in  utilization  of  salt  water;  and  on  another 
page,  under  national  resources,  the  same  item 
is  listed  at  a  million  dollars.  I  wonder  if 
those  could  be  reconciled? 

THE  PRESIDENT.  Can  you  reconcile  them, 
Mr.  Budget  Director? 

Mr.  Pace:  The  answer  on  that  is  that 
unfortunately  in  your  tables  you  have  to 
round  the  figures,  and  this  is  purely  a  ques- 
tion of  rounding.  The  statement  and  your 
tables  is  a  rounded  figure.  The  statement 
in  your  direct  quotations  is  an  accurate 
statement. 

Q.  Which  one  is  the  one  that  will  be  used, 
Mr.  Pace? 

Mr.  Pace:  The  one  in  the  text  and  not  in 
the  tables. 

Q.  The  one  not  in  the  list  of  proposed 
legislation? 

Mr.  Pace:  That  is  correct. 

Q.  That  would  be  a  million  dollars,  then? 

Mr.  Pace:  That  is  correct — that  is  correct. 

[18.]  Q.  Mr.  President,  can  you  tell  us 
the  figure  of  the  national  income? 

THE  PRESIDENT.   $212  billioU. 

Q.  Is  that  for  both  fiscal  1950  and  195 1? 

Secretary  Snyder:  That  is  correct.  Aver- 
age annual  personal  income  paid  to  the  indi- 
vidual. 

Q.  212? 

Secretary  Snyder:  212. 

Q.  Is  that  for  fiscal 

Secretary  Snyder:  195 1,  and  also  in  the 
adjusted  figure  for  1950. 


[19.]  Q.  Mr.  President,  what  is  the  prob- 
able figure  on  total  national  output  on  what 
we  call  national  income  ?  That  is  a  different 
figure  from  the  personal  income  figure. 

THE  PRESIDENT.  That  includcs  corpora- 
tions, and  everything.  I  think  the  total 
figure  includes  all  income — this  is  personal 
income. 

Q.  Comparable  figure  to  the  one  used  in 
the  Economic  Report? 

THE  PRESIDENT.  Between  255  and  260 
would  be  your  figure  that  you  are  talking 
about. 

[20.]  Q.  Right  along  that  line,  what 
level  of  employment  or  unemployment  are 
you  assuming? 

THE  PRESIDENT.  That  is  set  out  in  the 
Message  on  the  State  of  the  Union,  and  I 
would  invite  you  to  read  it.* 

Q.  Yes,  sir. 

[21.]  Q.  This  budget,  then,  is  predicated 
on  no  change  in  personal  or  national  income 
in  this  coming  fiscal  year? 

THE  PRESIDENT.  That  is  correct,  at  present 
levels. 

Q,  At  present  levels. 

[22.]  Q.  Mr.  President,  is  your  ERP 
given  here  a  final  estimate,  or  is  that  subject 
to  change? 

THE  PRESIDENT.  It  is  subjcct  to  changc,  of 
course. 

Q.  Well,  Mr.  President,  you  said  it's  on 
present  levels.    On  A4 

THE  PRESIDENT.   A4? 

Q.  Yes — direct  taxes  on  individuals  is 
higher  in  195 1  estimate  than  in  1950  esti- 
mate. Apparently  you  think  195 1  is  going 
to  be  better  than  1950? 

THE  PRESIDENT.  Well,  I  hopc  it  wiU  be. 

Q.  You  just  said  it  was  based  on  212? 

THE  PRESIDENT.   Right. 

Q.  Well,  how  do  you  get  the  difference? 
Secretary  Snyder:  Well,  there  are  a  num- 
ber of  adjustments  there  that  in  the  1950 — 
*  Item  2. 


37 


[8]    Jan.  7 


Public  Papers  of  the  Presidents 


in  making  the  adjustments,  that  changed 
the  taxes. 

Q.  It  might  be  that  you  had  a  coal  or  steel 
strike  which  would  cut  down  corporation 
incomes  in  195 1? 

Secretary  Snyder:  We  certainly  don't 
want  one. 

Q.  Has  that  been  taken  into  considera- 
tion? 

Secretary  Snyder:  That  has  been  shown 
in  the  corporate  profits,  and  in  the  individual 
incomes. 

[23.]  Q.  Mr.  President,  I  need  clarifica- 
tion on  page  M84  (p.  104) — estimated  ex- 
penditures for  European  recovery.  The  fig- 
ure is  given  as  i  billion,  7. 

THE  PRESIDENT.  I  didn't  Understand  your 
question.    Please  repeat  it. 

Q.  I  would  like  to  have  clarification  of 
the  figure  of  i  billion,  7 — estimated  1951 
expenditures  on  European  recovery  program 
and  other  foreign  aid? 

Mr.  Pace:  That  is  the  part  that  comes  out 
of  the  new  appropriations.  The  other  is 
carryover  appropriation,  making  the  two 
totals  the  same.  In  other  words,  this  is  the 
new  part  that  will  come  out  of  the  new 
appropriation.  A  large  part  will  be  carry- 
over from  old  appropriations.  Thus  a  mil- 
lion, 550  will  be  a  carryover  from  old  appro- 
priations. This  will  be  the  amount  of 
expenditures  that  will  come  out  of  appro- 
priations asked  this  year. 

Q.  Thank  you. 

Q.  Mr.  President,  then  the  only  new 
money  is  that  on  page  i,  I  guess  it  is — ^40 
billion — 

THE  PRESIDENT.  Which  page  is  that  ? 

Q.  M5  (p.  45),  I  guess. 

THE  PRESIDENT.  That's  right. 

Q.  One  more  question,  is  that  $25  million 
item  in  there  the  only  immediate  expendi- 
ture contemplated  for  point  4  ? 

THE  PRESIDENT.  YeS. 

Q.  $45  million. 


THE  PRESIDENT.   YeS. 

Q.  Thank  you. 

THE  PRESIDENT.  The  Budget  Director  calls 
attention  to  the  fact  that  the  operational 
figure  for  1951  is  substantially  below  the 
operational  figure  for  1950 — about  $3  bil- 
lion— ^which  would  have  its  effect  on  future 
years. 

Q.  Mr.  Pace,  could  I  come  back  to  that 
question  about  that  billion,  7  on  ERP?  I 
am  still  mixed  up  about  that.  Does  that 
billion,  7  come  out  of  the  3  billion,  i  total 
new  appropriations? 

Mr.  Pace:  That's  right.  That's  right. 
That  is  the  part  that  will  be  expended  out 
of  that  cash  payments.  That's  the  distinc- 
tion between  these  payments  and  appropria- 
tions. Thus,  appropriations  for  the  3 
billion,  2  and  the  i  billion,  7  is  the  amount 
of  money  that  will  actually  be  paid  out  in 
the  year  195 1  out  of  that  new  appropriation. 

Q.  Where  does  the  balance  come? 

Mr.  Pace:  The  balance  comes  from  1950. 

Q.  From  the  1950? 

Mr.  Pace:  That's  right.  It's  a  carryover 
there,  as  it  always  is,  which  is  the  really 
confusing  thing  about  this  Federal  budg- 
etary process. 

[24.]  Q.  Do  you  have  an  expenditure 
breakdown  for  the  Army,  Navy,  and  Air 
Force? 

THE  PRESIDENT.   YeS. 

Q.  There  is  an  appropriation  breakdown 
which  I  couldn't  find — an  expenditure 
breakdown. 

THE  PRESIDENT.  You  wiU  find  a  table  in 
there — ^when  I  was  running  through  it  last 
night — ^I  think  table  8  covers  it.  You  will 
find  that  under  different  headings  in  all  the 
Government.    You  will  find  it  under  table  8. 

Mr.  Pace:  Table  8— -A63. 

THE  PRESIDENT.  63 — A63 — ^you  will  find 
all  those  things  covered  in  every  branch  of 
the  Government  in  table  8. 

[25.]     Q.  Mr.  President,  on  M18  (p.  54), 


38 


Harry  S.  Truman,  ig^o 


Jan.  7    [8] 


second  paragraph,  "In  195 1,  about  $2.5  bil- 
lion of  the  increase  in  the  debt  will  be 
financed  by  new  investments  in  Federal  secu- 
rities by  trust  accounts  and  other  Govern- 
ment agencies."  Does  that  mean  that  2 
billion,  5  will  be  asked  by  public  financing? 
Is  that  the  only  other  way  you  can  get  it? 

Secretary  Snyder:  That  is  the  difference, 
yes. 

Q.  New  public  financing? 

Secretary  Snyder:  That  is  correct. 

Q.  Will  the  war  bonds  meet  that,  or  will 
that — not  war  bonds,  savings  bonds— — 

Secretary  Snyder:  Savings  bonds. 

Q.  Yes. 

Secretary  Snyder:  We  have  not  deter- 
mined what  category — whether  short  term, 
long  term,  or  intermediate  term,  but 

Q.  Public. 

Secretary  Snyder:  ^if  the  necessity  for 

additional  funds  comes  up,  we  will  give  con- 
sideration to  additional  types  of  securities. 

Q.  Mr.  Secretary,  you  will  expect  the  sav- 
ings bonds  to  take  as  much  of  that  as  possi- 
ble, will  you  not? 

Secretary  Snyder:  Well,  the  savings  bond 
is  of  course  part  of  our  overall  financing 
program,  and  they  have  been  effectively 
carrying  a  pretty  good  part  of  the  general 
distribution  of  our  sales,  because  up  to  right 
now  we  are  still  selling  more  savings  bonds 
than  the  redemptions  are  taking  out. 

Q.  On  page  M 

Secretary  Snyder:  We  are  not  using  sav- 
ings bonds  to  any  specific  purpose.  It  is  just 
part  of  the  general  revenue  of  the  budget. 

THE  PRESIDENT.  What  is  it  you  want  to 
ask? 

[26.]  Q.  M31  (p.  64):— "While  no  new 
obligational  authority  is  recommended  in 
this  Budget"  for  ships — new  ships — I  imag- 
ine they  go  2  or  3  years  ahead,  don't  you, 
on  laying  keels,  etc.? 

THE  PRESIDENT.   YeS. 


Q.  But  no  new  ships  contemplated  under 
the  budget? 

THE  PRESIDENT.  That  is  correct — that  is 
correct. 

[27.]  Q.  Mr.  President,  is  there  anything 
in  the  message  to  indicate  when  you  expect 
to  balance  the  budget,  in  what  year? 

THE  PRESIDENT.  No.  No,  I  am  uot  that 
much  of  a  prophet. 

[28.]  Q.  Well,  Mr.  President,  the  Budget 
Director  said  that  the  obligations  would 
be  about  $3  billion — ^request  for  obligations — 
about  $3  billion  less  than  last  year.  Can  you 
give  us  a  breakdown  on  which  specific  items 
were  cut  down? 

Mr.  Pace:  I  can't  give  it  to  you  here.  I 
can  give  it  to  you  over  at  the  oflSice.  I  think 
probably  it  is  set  out  in  the  table  here. 

THE  PRESIDENT.  It's  iu  oue  of  these  tables — 
I  saw  it — but  I  can't  remember  which  one. 
It  is  set  out  in  one  of  those  tables. 

Mr.  Pace:  If  you  will  take  a  look  at  table 
3 — ^pardon  me — on  pages  96  and  97 — ^it  will 
give  you  the  general  picture.  Take  a  look 
at  the  recap  on  A7,  it  will  give  you  the 
figures  you  need. 

[29.]  Q.  Mr.  President,  in  looking  over 
Treasury,  I  was  unable  to  determine  any 
item  that  would  show  the  cost  of  the  silver 
purchase  program  during  the  year.  Is  that 
broken  down  in  any  way  in  the  budget? 

THE  PRESIDENT.  Did  you  use  those  figures? 

Mr.  Pace:  We  haven't  got  a  breakdown  of 
that  in  here,  no. 

[30.]  Q.  How  much  additional  revenue, 
Mr.  President,  would  the  proposed  payroll 
tax  increase  on  January  i,  1951,  bring  in? 

THE  PRESIDENT.  I  cau't  tell  you  offhand,  I 
don't  know.  The  Budget  Director  can  get 
it  for  you. 

Mr.  Pace:  Yes,  I  can  get  that. 

[3^*]  Q«  M^'  President,  on  page  Mi 8 
(p.  54),  coming  back  to  the  reference  to 
$254  billion,  new  investments  by  Govern- 


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mental  agencies,  does  that  mean  that  the 
proposed  tax  increase  would  have  an  upper 
limit  of  2.6  to  meet  the  i.i  deficit? 

THE  PRESIDENT.  I  wiU  auswer  that  in  the 
message  on  taxes  which  I  am  getting  ready 
right  now. 

[32.]  Q.  Mr.  President,  on  page  A49, 
Federal  Security  Agency,  public  health,  aid 
to  local  public  health,  etc.,  are  those  figures 
all  based  on  the  three  bills  now  in  the 
Congress? 

Mr.  Pace:  That  is  correct. 

THE  PRESIDENT.  That  is  correct. 

Q.  Will  you  have  that  again? 

THE  PRESIDENT.  You  Wanted  to  know  if 
these  figures  for  the  public  health  on  page 
A49  were  based  on  pending  legislation? 
They  are. 

Mr.  Pace:  That  is  correct. 

[33']  Q-  M^'  President,  on  page  1114, 
the  special  section  you  refer  to  in  the  begin- 
ning  

THE  PRESIDENT.  YeS. 

Q. on  investments,  you  have  a  figure 

in  the  first  paragraph  of  page  1114  of  8.7 
billion  for  Federal  assets.  In  your  message 
on  page  Mi 2  (p.  49),  you  have  a  figure  of  5.6 
billion.  Is  the  only  difference  that  the  mili- 
tary public  works  are  excluded? 

THE  PRESIDENT.  The  budget  will  have  to 
answer  that  for  you. 

Mr.  Pace:  Military  public  works  and 
equipment  are  excluded. 

Q.  That  is  the  only  difference? 

Mr.  Pace:  That's  right.  Although  they 
are  returnable,  they  are  separated  for  the 
purposes  of  determining  what  actually  is  a 
return  on  the  investment. 

[34.]  Q.  Mr.  President,  I  would  like  to 
get  this  cleared  up.  On  page  M57  (p.  84), 
about  two-thirds  down  the  page,  "As  a  step 
toward  correcting  this  situation,  I  shall  trans- 
mit to  the  Congress  a  legislative  proposal  to 
authorize  a  limited  Federal  program  to  assist 
capable  youth  who  could  not  otherwise  do 


so  to  pursue  their  desired  fields  of  study  at 
the  institutions  of  their  choice."  Those  are 
Federal  scholarships? 

THE  PRESIDENT.  M57?  Wait  a  miuute,  I 
haven't  found  it  yet. 

Q.  About  two-thirds  down. 

THE  PRESIDENT.  "This  Budget  includes 

Q.  No,  the  sentence  above  that. 

THE  PRESIDENT.  "As  a  Step  toward  cor- 
recting this  situation,  I  shall  transmit  to  the 
Congress  a  legislative  proposal  to  authorize 
a  limited  Federal  program  to  assist  capable 
youth  who  could  not  otherwise  do  so  to 
pursue  their  desired  fields  of  study  at  the 
institutions  of  their  choice."  This  is  about 
as  plain  as  I  can  make  it. 

Q.  Federal  scholarships?  That's  a  new 
one  on  me. 

Mr.  Pace:  It's  higher  education. 

Q.  I  know.    College  education. 

Mr.  Pace:  That's  right. 

Q.  Any  plans  worked  out  for  that — who 
will  get  it? 

THE  PRESIDENT.   No. 

Q.  How  it  will  be  distributed? 

THE  PRESIDENT.  The  details  have  not  been 
worked  out. 

Q.  Has  the  amount  been  decided  on  ? 

THE  PRESIDENT.  No.  The  cxact  figure  has 
not  been  worked  out. 

Q.  Going  to  be,  then,  a  sort  of  informa- 
tion on  the  national  education? 

THE  PRESIDENT.  When  we  get  the  details 
worked  out,  I  will  give  it  to  you  in  a  printed 
statement  of  what  I  hope  to  do. 

Q.  Does  the  budget  include  that  figure, 
sir? 

THE  PRESIDENT.  A  million  dollars.  In- 
cludes a  million  dollars. 

Q.  Only  a  million? 

THE  PRESIDENT.  That's  Hght. 

Mr.  Pace:  That  is  just  to  establish  the 
organization. 

Q.  How  many  do  you  expect  to  take  care 
of? 


40 


Harry  S.  Truman,  ig$o 


Jan.  7    [8] 


THE  PRESIDENT.  That  is  to  sct  Up  the  or- 
ganization. Don't  expect  to  take  care  of  a 
one. 

Q.  Well  then,  will  that  not  be,  sir,  an 
additional  budget  figure,  an  additional  ap- 
propriation upon  the  budget? 

THE  PRESIDENT.  It  might  be.  Whenever 
it  gets  into  operation.  Of  course,  it  is  not 
in  this  budget.  I  don't  think  we  will  have 
any  call  for  it  in  this  budget.  But  it  will 
be  added  to  the  budget  whenever  we  are 
ready  to  operate. 

Q.  In  other  words,  operations  will  begin 
after  fiscal  year  195 1  ? 

THE  PRESIDENT.  I  think  SO.  1952.  It  sets 
out  in  M57  (p.  84)  that  it  might  begin  in 
fiscal  year  1952. 

Q.  Mr.  President,  Mr.  McGrath  ^  of  the 
Office  of  Education  has  recommended  $300 
million  for  that  program  annually.  Are  you 
prepared  to  go  that  high  for  it? 

THE  PRESIDENT.  I  am  not  prepared  to  make 
any  statement  on  the  subject  now. 

[35-]  Q'  J^r«  President,  on  page  M29 
(p.  63),  you  refer  to  the  maintenance  of  six 
Marine  Corps  battalion  landing  teams. 
Does  that  indicate  a  change  in  the  status  of 
the  two  divisions? 

THE  PRESIDENT.  Will  you  repeat  that  ques- 
tion? 

Q.  On  page  M29  (p.  63),  you  refer  to 
maintaining  six  Marine  Corps  battalion 
landing  teams.  Does  that  indicate  abolish- 
ment of  the  two  divisions  they  now  have? 

THE  PRESIDENT.  I  think  you  will  have  to 
ask  that  question  of  the  Secretary  of  Defense. 
I  myself  can't  answer  it. 

[36-]  Q«  Mr.  President,  on  M80  (p. 
10 1 ) — that  chart — Bureau  of  Internal  Reve- 
nue, Treasury — ^$253  million — is  that  for  the 
checking  up  of  income  tax  returns? 

THE  PRESIDENT.  That's  right.  It's  for  en- 
forcement. Additional  employees  for  en- 
forcement. 


''Earl  J.  McGrath,  Commissioner  of  Education. 


Q.  That  is  a — it  has  not  been  authorized 
has  it,  that  is  my  recollection? 

THE  PRESIDENT.  It  has  been  asked  for  in 
present  appropriations,  but  it  has  not  been 
authorized  yet. 

Q.  Mr.  President,  is  that  3,000  additional 
employees? 

Secretary  Snyder:  Approximately  3,000. 
It's  2,960,  something  like  that.  Approx- 
imately 3,000. 

THE  PRESIDENT.  It  wiU  bc  a  good  invest- 
ment for  the  Government.  I  think  we  will 
take  in  a  billion  or  a  billion  and  a  half  more 
in  taxes  if  we  get  that  through. 

[Long  pause  here] 

What's  the  matter  with  you  people  this 
morning?  [Laughter]  Is  this  thing  so 
plainly  gotten  up  that  no  questions  are  nec- 
essary?    Go  ahead  back  there? 

[37.]     Q.    Mr.  President,  on  M18   (p. 

54) — 

Q.  Mr.  President 

THE  PRESIDENT.  Just  a  miuute.  What's 
the  page  now? 

Q.  Ml 8 — on  the  Public  Debt — do  you 
have  any  idea  how  high  you  can  go  with 
safety  on  that? 

THE  PRESIDENT.  There  are  a  lot  of  guesses 
on  that,  as  high  as  278 — ^280,  the  Secretary 
of  the  Treasury  says. 

Secretary  Snyder:  I  have  been  trying  my 
best  to  get  to  the  point  where  we  can  pay 
some  of  that  debt  off. 

THE  PRESIDENT.  We  did  pay  $26  billion 
on  it,  if  you  remember,  but  a  certain  Con- 
gress came  along  and  raised  Cain  with  it 

Q.  Which  one  was  that? 

THE  PRESIDENT. but  we  are  going  to 

make  it,  some  day. 

Q.  Mr.  President,  regarding  the  public 
debt,  what  do  you  regard  as  a  danger  point? 

THE  PRESIDENT.  I  havc  no  Statement  to 
make  on  the  subject.  I  remember  when  I 
was  in  the  Senate  of  the  United  States  I 
heard  distinguished  Senators  get  up  and  say 


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Public  Papers  of  the  Presidents 


that  whenever  the  national  debt  had  reached 
$110  billion  the  country  would  go  bankrupt 
and  we  would  all  go  to  hell — and  we  didn't. 
And  I  don't  think  we  will  now,  either,  under 
present  conditions. 

[38.]  Q.  Mr.  President,  if  you  get  those 
additional  3,000  Treasury  agents,  would  you 
be  able  to  collect  that  additional  billion  or 
billion  and  a  half  in  1951,  or  would  it  take 
longer? 

Q.  Louder! 

Secretary  Snyder:  Will  you  repeat  that 
question,  so  that  they  can  hear  it? 

Q.  Whether  you — ^if  you  get  the  addi- 
tional 3,000  Treasury  agents,  would  you  be 
able  to  collect  the  additional  billion  to  a  bil- 
lion and  a  half  in  taxes  in  fiscal  195 1  ? 

Q.  We  still  can't  hear.     [Laughterl 

Secretary  Snyder:  He  asked  the  question 
that  if  we  got  the  additional  3,000  men  in 
the  Internal  Revenue,  would  we  be  able  to 
collect  an  additional  billion  dollars  in  fiscal 
1 95 1.  I  will  have  to  point  out  that  as  we 
progressed  beyond  the  war  period,  when  we 
had  the  excise  tax  situation,  and  a  lot  of 
black  marketing,  that  the  enforcement  peo- 
ple had  a  luxury  field  in  which  to  collect 
additional  revenue.  We  will  have  to  put  on 
additional  people  and  work  harder  now  to 
contact  more  people  to  collect  less  money. 
It  is  going  to  be  a  difficult  proposition  to  col- 
lect as  much  undeclared  revenue — ^yes — 
undeclared  revenue — ^now,  with  more  people, 
than  it  was  with  fewer  people  a  year  or  two 
ago. 

We  are  going  to — we  have  put  on  a  net 
of  4,100  people  within  the  past  6  or  8  months, 
and  with  these  additional  people  made  avail- 
able to  us  through  appropriations  we  are 
going  to  put  on  a  very  strenuous  campaign. 
We  cannot  estimate  exactly  what  the  addi- 
tional revenue  would  be  with  those  people, 
because  of  the  changing  conditions,  but  we 
know  that  it  will  net  out  a  great  deal  more 
than  if  we  did  not  have  those  people. 


Q.  Mr.  Secretary,  how  much  do  you  esti- 
mate the  costs  on  collecting  each  year,  in 
revenue? 

Secretary  Snyder:  We  have  no  way  of  esti- 
mating that. 

[39.]  Q.  Mr.  President,  on  page  M9 
(p.  47),  you  say  "we  can  and  should  make 
now  some  of  the  changes  which  are  needed 
in  our  tax  laws,  and  bring  nearer  the  time 
when  the  budget  can  be  balanced."  I  be- 
lieve there  are  also  similar  phrases  in  the 
Economic  Report? 

THE  PRESIDENT.  Yes,  we  go  iuto  detail  on 
that  in  that  message  I  am  promising  you.^ 

[40.]  Q.  I  was  going  to  ask  you  about 
taxes.  I  was  going  to  ask  if  you  have  a  goal 
when  you  hope  the  budget  will  be  in 
balance? 

THE  PRESIDENT.  I  waut  it  balanced  as  soon 
as  possible,  and  I  can't  set  a  date  on  it,  as  I 
said  awhile  ago.  Of  course  I  am  as  anxious 
to  have  it  balanced  as  anybody  in  the  country. 

[41.]  Q.  Mr.  President,  on  page  M82  (p. 
102) — ^that  civil  rights  program:  "In  addi- 
tion to  the  amount  provided  for  establishing 
a  Fair  Employment  Practice  Commission, 
there  is  included  f8oo,ooo  as  the  amount 
needed  under  proposed  legislation  to  estab- 
lish a  permanent  Commission  on  Civil 
Rights."  I  thought  they  had  abolished  that 
Fair  Employment  Commission? 

THE  PRESIDENT.  It  has  been  abolished,  but  I 
am  asking  them  to  reinstate  it.  I  am  asking 
for  it  to  be  set  up  again  in  the  civil  rights 
legislation. 

Q.  It  says  "proposed."  Has  it  already 
been  proposed?     I  don't  remember  it. 

THE  PRESIDENT.  Yes,  it  has  been  proposed. 

Q.  By  you? 

THE  PRESIDENT.  Yes.  I  think  if  you  will 
read  my  message  on  civil  rights  you  will  find 
it's  in  there.'^ 

Q.  It  may  be  so,  there  are  a  lot  of  things 


"Item  18. 

^See  1948  volume,  this  series,  Item  20. 


42 


Harry  S.  Truman,  igp 


Jan.  7    [8] 


in  that  message.    [Laughter] 

[42.]  Q.  Mr.  President,  on  page  M51 
(p.  79)-RFC 

THE  PRESIDENT.   M51? 

Q.  on  the  bottom  of  the  second  para- 
graph, "I  am  recommending  an  additional 
$500  million  in. public  debt  authorizations 
in  fiscal  year  1950,  and  $250  million  in  1951." 
What  is  that,  a  direct  entrance  into  the  pub- 
lic debt  of  that  borrowing — in  other  words, 
increasing  the  public  debt  directly  in  the  2 
fiscal  years  of  750  million? 

Secretary  Snyder:  It  is  a  method  of  financ- 
ing those  programs. 

THE  PRESIDENT.  The  Secretary  of  the 
Treasury  says  that  is  a  method  of  financing 
those  programs. 

Q.  What  I  am  getting  at,  sir,  is  how  do 
you  translate  public  debt  authorizations? 

Secretary  Snyder:  That  would  be  the  sale 
of  Government  obligations  to  the  public. 

Q.  In  other  words,  a  direct  entrance  into 
the  public  debt? 

Secretary  Snyder:  That's  right. 

[43.]  Q.  Mr.  President,  page  M27  (p. 
61) — in  the  National  Defense  section — ref- 
erence to  a  reduction  in  new  obligational 
authority.  Are  the  details  of  that  available 
inhere? 

THE  PRESIDENT.  You  wiU  find  thcm — set 
out  specifically  in  table  8  that  has  to  do  with 
that  part  of  the  budget. 

[44.]  Q.  Mr.  President,  why,  in  your 
Military,  were  not  the  atomic  energy  and 
stockpiling  included  in  it  as  the  military 

THE  PRESIDENT.  Because  I  don't  think  they 
properly  should  be  included  in  that.  We 
have  a  special  setup  for  the  atomic  energy 
proposition,  and  the  stockpiling  is  for  the 
general  welfare  of  the  whole  Government. 
Stockpiling  is  included,  but  I  don't  think  it 
is  necessary  that  it  should  be. 

Mr.  Pace:  Stockpiling  is  in  the  military. 

[45.]  Q.  Is  there  a  budget  item,  Mr. 
President,  to  cover  universal  training? 


THE  PRESIDENT.   No. 

Q.  Why  not?     You  recommended  it. 

THE  PRESIDENT.  I  Still  rccommcud  it,  and 
I  am  still  for  it.  I  have  been  recommending 
it  ever  since  October  1945.^ 

Q.  How  much  would  it  cost  if  you  got  it? 

THE  PRESIDENT.  I  estimate  it  as  $800 
million. 

Q.  If  you  got  it,  would  it  increase  the 
deficit  that  much? 

THE  PRESIDENT.   YeS. 

[46.]  Q.  Is  there  an  item  in  here  any- 
where— I  can't  find  it — for  going  forward 
with  that  radar  net  development? 

Secretary  Snyder:  Yes.  That  is  in  the 
Treasury  appropriation — Coast  Guard. 

THE  PRESIDENT.  Coast  Guard,  under  the 
Treasury,  so  the  Secretary  tells  me. 

Mr.  Pace:  It  is  included,  the  radar  fence, 
in  the  Department  of  the  Air  Force.  It  is 
included  in  here  as  well  as  the  one  men- 
tioned by  the  Secretary  of  the  Treasury. 

Q.  How  much  is  that  item? 

THE  PRESIDENT.  I  cau't  auswer  offhand. 
The  Budget  will  have  to  hunt  it  up. 

[47.]  Q.  Page  M44  (p.  74) — social  secu- 
rity— ^social  welfare,  health  and  security — 
proposed  legislation  under  the  Federal  Secu- 
rity Agency — under  promotion  of  public 
health — ^if  I  remember  correctly,  last  year 
you  listed  a  tentative  figure  of  800  million 
for  a  proposed  health  program.  I  notice 
that  is  not  there  this  year.  Do  you  concede 
that  there  is  no  possibility  of  enacting  that 
program?  ^ 

THE  PRESIDENT.  No,  I  don't  coucede  it,  and 
I  am  going  to  fight  for  it  as  long  as  I  am 
President.  And  I  am  going  to  get  it,  one  of 
these  days. 

Q.  This  year? 

THE  PRESIDENT.  In  1 947,  the  Budget  Di- 
rector says. 

®See  1945  volume,  this  series,  Item  174. 
'See  1945  volume,  Item  192,  and  1949  volume, 
Item  85,  this  series. 


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[8]    Jan.  7 


Public  Papers  of  the  Presidents 


Mr.  Pace:  If  you  look,  you  will  see  it. 

[48.]  Q.  You  mention  the  subject  of 
taxes  in  three  messages 

THE  PRESIDENT.  I  beg  youf  pardon? 

Q.  You  mention  the  subject  of  taxes  in 
three  messages,  but  I  don't  recall  your  saying 
anything  about  an  increase  in  taxes.  Did 
you  say  anything  about  taxes  being 

THE  PRESIDENT.  I  am  goiug  to  tcll  you  all 
about  it  when  we  get  this  tax  message  ready. 
It  will  be  ready  in  a  few  days. 

Q.  You  say  in  a  few  days,  sir? 

THE  PRESIDENT.  Yes — ^few  days.  It  won't 
be  ready  Monday.    That  is  only  2  days  off. 

Well,  gendemen,  I  appreciate  your  interest 
in  this,  and  I  want  to  say  to  you  that  the 
Budget  Bureau  and  the  Treasury  will  be 
available  to  answer  any  further  questions 
that  you  may  have  to  ask.  We  are  glad 
to  do  it — glad  to  give  you  all  the  information 
possible  in  connection  with  this  tremendous 


pile  of  figures.  We  have  tried  to  make  it  as 
plain  and  to  set  it  out  in  as  simple  language 
as  possible.  I  think  myself  that  it  is  the 
best  budget  statement  that  has  been  gotten 
out  since  I  have  been  President.  Thank  you 
very  much. 

Voices:  Thank  you. 

THE  PRESIDENT.  Oh,  the  Budget  Director 
wants  me  to  call  your  attention  to  page  Mi 3 
(p.  51),  the  Management  Improvement  Pro- 
gram. I  hope  you  will  read  that  very  care- 
fully. That  is  the  first  time  it  has  been  in 
the  budget. 

Reporter:  Thank  you,  Mr.  President. 

note:  President  Truman's  two  hundred  and  eleventh 
news  conference  was  held  in  the  Movie  Projection 
Room  in  the  East  Wing  of  the  White  House  at  10:  05 
a.m.  on  Saturday,  January  7,  1950.  The  President 
was  assisted  in  presenting  information  on  the  budget 
by  John  W.  Snyder,  Secretary  of  the  Treasury,  by 
Frank  Pace,  Jr.,  Director  of  the  Bureau  of  the  Budget, 
and  by  Frederick  J.  Lawton,  Assistant  Director  of 
the  Bureau  of  the  Budget. 


Annual  Budget  Message  to  the  Congress:  Fiscal  Year  195 1. 
January  9,  1950 

[  Released  January  9,  1950.    Dated  January  3,  1950  ] 


To  the  Congress  of  the  United  States: 

I  am  transmitting  my  recommendations 
for  the  Budget  of  the  United  States  for  the 
fiscal  year  ending  June  30, 195 1. 

This  Budget  is  a  statement  of  the  financial 
program  for  the  United  States  Government, 
under  both  existing  laws  and  new  legisla- 
tion which  I  am  recommending  to  the  Con- 
gress. It  is  an  expression,  in  financial  terms, 
of  the  actions  this  Government  can  and 
should  take  at  this  time  to  build  toward  eco- 
nomic growth  and  the  expansion  of  human 
freedom,  in  our  own  country  and  in  the 
world. 

For  the  fiscal  year  1951,  Budget  expendi- 
tures under  this  financial  program  are  esti- 
mated at  42.4  billion  dollars,  about  860  mil- 
lion dollars  below  estimated  expenditures  for 


the  current  year.  Budget  receipts  under 
existing  tax  laws  are  estimated  to  be  37.3 
billion  dollars,  a  decrease  of  about  460  mil- 
lion dollars  below  the  present  year.  The 
estimated  Budget  deficit  for  the  fiscal  year 
1 95 1  is  thus  5.1  billion  dollars  under  present 
tax  laws,  compared  with  an  anticipated 
deficit  of  5.5  billion  dollars  in  the  fiscal  year 
1950. 

I  shall  shordy  recommend  to  the  Congress 
certain  adjustments  in  our  tax  laws  which 
will  produce  some  net  additional  revenue  in 
195 1,  not  reflected  in  this  Budget.  These 
adjustments  will  result  in  a  larger  revenue 
increase  in  subsequent  years. 

A  reduction,  greater  than  that  in  expendi- 
tures, has  been  made  in  the  requests  for  new 
appropriations  and   other  obligational  au- 


44 


Harry  S.  Truman,  ig^o 

Budget  Totals 
[  Fiscal   years.     In  millions  ] 

1949 
actual 

Receipts $38,  246 

Expenditures 40,  057 

Deficit —I,  811 

Note. — ^Estimated  receipts  exclude  new  tax  proposals. 


Jan.  9    [9] 


1950 

estimated 

$37,763 

43, 297 

1951 

estimated 

$37,  306 

42, 439 

-5,534 

—5, 133 

thority  in  1951.  Expenditures  occur  when 
the  Government  pays  its  obligations,  and  the 
Congress  grants  authority  to  incur  obliga- 
tions when  it  enacts  appropriations,  contract 
authorizations,  and  authorizations  to  borrow 
from  the  Treasury.  The  authority  to  incur 
new  obligations  which  I  am  recommending 
for  the  fiscal  year  1951  totals  40.5  billion  dol- 
lars, considerably  below  the  1950  level.  This 
fact  is  significant  as  an  indication  that  the 
downward  trend  in  expenditures  from  1950 
to  195 1  may  be  expected  to  continue. 

This  financial  program  provides  a  sound 
basis  on  which  to  proceed.  It  will  properly 
support  the  extraordinary  responsibilities  of 
the  Federal  Government,  both  at  home  and 
abroad,  and  at  the  same  time  meet  our  obliga- 
tion to  pursue  a  policy  of  financial  prudence 
and  restraint.  Such  a  policy  must  be  di- 
rected at  producing  a  surplus  as  soon  as  pos- 
sible under  favorable  economic  conditions. 
The  reductions  in  expenditures,  which  I  rec- 
ommend, can  be  achieved  and  still  permit 
our  Government  to  carry  on  its  necessary 
operations  effectively.  The  moderate  in- 
crease in  revenue,  which  I  shall  recommend 
in  conjunction  with  specific  tax  reforms,  can 
be  achieved  without  impairing  continued 
economic  progress. 

In  preparing  this  Budget,  I  have  carefully 
evaluated  the  possible  alternatives  in  the 
light  of  the  realities  of  our  present  situation. 
The  soundness  of  a  fiscal  program  cannot 
properly  be  judged  simply  by  the  year-to-year 
change  in  the  expected  margin  between  re- 

Lew. -a: 


ceipts  and  expenditures.  A  prudent  pro- 
gram must  meet  much  broader  tests,  if  it  is 
to  serve  the  long-range  interests  of  our 
people. 

The  soundness  of  a  fiscal  program  must 
first  of  all  be  judged  by  whether  it  allows 
the  people,  through  their  Government,  to 
meet  the  demands  which  the  foreign  and 
domestic  situations  put  upon  them.  The 
necessary  functions  of  the  Government  in 
our  complex  society  are  varied  and  wide- 
spread. They  require  large  expenditures 
but  they  are  vital  to  our  security,  to  the  pro- 
tection of  our  liberties,  to  continued  social 
and  economic  progress,  and  to  the  welfare 
of  our  people.  I  have  reviewed  the  expendi- 
ture programs  in  the  Budget,  one  by  one, 
and  found  them  necessary  to  achieve  these 
purposes.  I  am  confident  that  the  Congress 
w^ill  come  to  essentially  the  same  conclusion. 

The  soundness  of  the  Government's  fiscal 
program  must  also  be  judged  by  its  impact 
on  the  economy.  The  Federal  Budget  is  a 
substantial  part  of  the  total  flow  of  incomes 
and  expenditures  in  our  country  each  year. 
Federal  receipts  and  expenditures  must  both 
be  planned  to  encourage  the  prosperity  of 
the  economy  and  keep  it  healthy  and  grow- 
ing. Irresponsible  and  short-sighted  budg- 
etary action  could  contribute  to  a  worsening 
of  the  world  situation  and  to  a  decline  in 
production  and  employment  in  the  United 
States.  Under  either  of  these  circumstances, 
we  would  find  ourselves  faced  by  the  neces- 
sity of  Budget  oudays  much  larger  than 


45 


[p]    Jan.  9 


Public  Papers  of  the  Presidents 


those  I  am  proposing,  while  the  prospect  for 
increased  revenues  would  be  much  less 
encouraging.  I  am  convinced  that  the  rec- 
ommendations I  am  making,  both  for  ex- 
penditures and  for  revenues,  will  contribute 
to  continued  economic  development. 

The  soundness  of  a  fiscal  program  must 
be  judged,  finally,  in  the  light  of  where  that 
program  will  take  us  over  a  period  of  years. 
This  is  partly  a  matter  of  necessity:  most 
Government  programs  are  based  on  a  time 
schedule  extending  over  a  number  of  years, 
and  a  large  part  of  the  Budget  in  any  one 
year  represents  binding  commitments  to 
spend  established  in  previous  years  on  the 
one  hand,  and  tax  liabilities  already  incurred 
on  the  other.  It  is  primarily  a  matter  of 
wisdom:  sharp  and  arbitrary  changes  in  Gov- 
ernment programs,  even  where  feasible,  in- 
volve economic  loss  and  dislocations,  and 
may  cause  serious  damage  to  parts  of  the 
economy.  I  am  confident  that  the  fiscal 
recommendations  provide  a  solid  basis  for 
moving  toward  budgetary  balance  in  the 
next  few  years.  My  confidence  is  based  on 
three  main  considerations. 

First,  it  has  been  possible  to  reduce  antici- 
pated expenditures  for  the  fiscal  year  1951 
by  close  to  i  billion  dollars  below  the  esti- 
mated level  for  1950,  and  an  even  greater 
reduction  has  been  made  in  the  request  for 
new  obligational  authority.  Thus,  the  poli- 
cies followed  in  preparing  this  Budget  will 
permit  further  reductions  in  subsequent 
years.  Specifically,  the  largest  item  in  the 
Budget,  national  defense  expenditures,  is  ex- 
pected to  approximate  the  1951  level  in  the 
next  few  years;  and  the  costs  of  our  foreign 
aid  and  veterans'  programs  should  continue 
the  decline  already  expected  between  1950 
and  1 95 1.  It  should  also  be  possible  in 
future  years  to  reduce  the  cost  of  programs 
which  have  helped  to  meet  the  postwar 
transition  problems  of  specific  major  areas 
of  our  economy,  notably  the  support  of  agri- 


cultural prices  and  the  creation  of  an  ade- 
quate secondary  market  for  housing  mort- 
gages. Finally,  if  the  Congress  enacts  the 
proposed  increase  in  postal  rates,  the  burden 
of  the  postal  deficit  on  recent  Budgets  will 
be  largely  eliminated. 

The  programs  mentioned  above  constitute 
the  bulk  of  the  Federal  Budget.  With  re- 
spect to  other  programs,  relating  primarily 
to  domestic  activities.  Federal  responsibilities 
will  increase  as  the  Nation  grows.  But  the 
additional  budgetary  requirements  for  these 
programs,  under  a  prudent  fiscal  policy, 
should  be  substantially  less  than  the  decline 
to  be  expected  in  the  extraordinary  postwar 
programs.  In  this  connection  it  should  be 
emphasized  that  the  urgently  needed  insur- 
ance measures  which  are  recommended  in 
the  fields  of  unemployment  compensation, 
old-age  security,  and  medical  care  will  be 
primarily  financed  by  special  taxes  designed 
to  defray  their  costs. 

Thus,  assuming  continued  favorable  eco- 
nomic and  international  developments,  it  is 
possible  to  plan  on  further  reductions  in  total 
expenditures  after  195 1. 

The  second  major  consideration  support- 
ing my  confidence  in  this  fiscal  program  is 
the  fact  that  our  economy  is  a  dynamic  and 
growing  one.  Each  year  our  population  and 
the  productivity  of  our  labor  force  rise,  and 
our  total  national  output  must  rise  also  if 
we  are  to  fulfill  our  obligation  to  maintain 
high  employment.  As  our  economy  grows, 
tax  revenues  will  grow  also.  The  effects  of 
this  growth  are  not  fully  reflected  in  the 
receipts  estimates  for  195 1,  because  the  tem- 
porary decline  in  incomes  during  this  past 
year  will  affect  some  tax  yields  in  1951. 

Federal  expenditures  are  themselves  of 
fundamental  importance  to  our  prospects  for 
steady  economic  growth.  Programs  for  such 
purposes  as  national  defense  and  interna- 
tional recovery  are  essential  to  maintain  a 
favorable  international  situation.    In  addi- 


46 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


tion,  many  Federal  expenditures  constitute 
direct  supports  for  important  sectors  of  our 
economy,  or  direct  investments  in  assets  such 
as  power  facilities  or  in  better  education  and 
other  services,  which  add  to  the  productive 
capacity  of  the  Nation.  Thus  this  Budget 
is  not  only  consistent  with  an  expanding 
economy,  but  will  make  a  substantial  con- 
tribution to  that  objective. 

In  analyzing  the  economic  impact  of  Fed- 
eral financial  operations  on  our  economy, 
increasing  attention  is  also  being  paid  to  the 
aggregate  of  Federal  cash  transactions  with 
the  public,  which  are  not  fully  reflected  in 
the  totals  of  Budget  expenditures  and  re- 
ceipts. Primarily  important  is  the  fact  that, 
as  long  as  the  social  insurance  trust  funds 
are  building  reserves  to  cover  liabilities  in 
future  years,  they  show  a  substantial  excess 
of  receipts  over  payments.  Therefore,  the 
current  economic  impact  of  Federal  financial 
activities,  as  reflected  in  the  net  difference 
between  all  cash  receipts  from  and  all  cash 
payments  to  the  public,  is  usually  different 
from  that  indicated  by  the  Budget  surplus 
or  deficit.  In  195 1,  for  example,  the  excess 
of  cash  payments  over  receipts  is  estimated 
at  2.7  billion  dollars,  2.4  billion  dollars  less 
than  the  estimated  Budget  deficit.  Continu- 
ing improvement  in  our  fiscal  position, 
which  our  present  plans  should  achieve,  will 
therefore  probably  result  in  an  excess  of  total 
cash  income  over  cash  outgo  before  the 
Budget  will  show  a  surplus.  This  aspect  of 
our  over-all  fiscal  position  is  important  in 
supporting  the  basic  economic  soundness  of 
the  fiscal  program,  although  it  does  not 
lessen  the  need  for  the  greatest  possible  pru- 
dence in  the  conduct  of  our  financial  opera- 
tions as  reflected  in  the  Budget,  which  is  the 
proper  instrument  of  Executive  and  Legis- 
lative control. 

The  third  major  consideration  supporting 
the  soundness  of  this  fiscal  program  is  the 
fact  that  the  tax  recommendations  which  I 


shall  transmit  to  the  Congress  will  both  im- 
prove our  tax  structure  and  place  us  in  a 
better  position  to  meet  our  continuing  fiscal 
requirements.  It  is  highly  important  that 
we  begin  to  make  the  basic  changes  in  the 
tax  system  which  are  needed  to  make  it 
more  equitable  and  to  provide  better  incen- 
tives for  producing  the  amounts  and  types  of 
investment,  consumption,  and  savings  which 
will  contribute  to  an  expanding  economy. 
The  large  and  badly  devised  tax  reduction  of 
1948  sharply  limits  the  extent  to  which  we 
can  make  changes  at  the  present  time.  Nev- 
ertheless, we  can  and  should  make  now  some 
of  the  changes  which  are  needed  in  our  tax 
laws,  and  bring  nearer  the  time  when  the 
Budget  can  be  balanced.  Because  of  the 
time  lag  in  tax  collections  after  changes  in 
the  law,  and  the  fact  that  some  of  the  changes 
will  result  in  an  immediate  loss  in  revenue, 
the  tax  recommendations  which  I  shall  sub- 
mit to  the  Congress  will  produce  less  addi- 
tional revenue  in  1951  than  in  subsequent 
years,  when  the  changes  will  be  fully 
effective. 

For  all  these  reasons,  the  financial  program 
which  I  am  recommending  represents  a 
sound,  long-range  basis  on  which  to  plan  our 
governmental  operations  at  this  time.  It  is 
directed  at  achieving  a  budgetary  balance 
in  the  only  way  in  which  it  can  be  achieved — 
by  measures  which  support  rather  than  im- 
pair the  continued  growth  of  our  country. 
It  is  based  on  expenditure  plans  which  can 
be  sustained  in  the  years  following  1951 
without  embarrassment  to  our  fiscal  position. 
Its  accomplishment  does,  however,  depend 
upon  our  continued  self-control  in  holding 
expenditure  programs  to  no  more  than  nec- 
essary levels. 

As  in  all  recent  years,  the  Budget  for  1951 
is  dominated  by  financial  requirements  to 
pay  the  costs  of  past  wars  and  to  achieve  a 
peaceful  world.  Estimated  expenditures  for 
these  purposes  are  30  billion  dollars,  or  about 


47 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


71  percent  of  the  total  Budget.  This  is  a 
reduction  of  1.8  billion  dollars  from  esti- 
mated expenditures  for  the  same  purposes  in 
1950.  National  defense  and  international 
programs,  designed  to  insure  our  security 
and  to  create  the  economic  and  political  con- 
ditions necessary  for  world  peace,  will  re- 
quire about  18  billion  dollars.  Veterans* 
programs  and  interest  on  the  public  debt, 
commitments  arising  mainly  from  the  last 
war,  will  require  about  12  billion  dollars. 

Our  unprecedentedly  large  expenditures 
in  recent  years  for  international  programs 
have  been  undertaken  to  assist  free  peoples 
to  recover  from  the  devastation  of  the  war 
and  to  restore  their  capacity  for  future 
growth  both  in  material  things  and  in  the 
practice  of  democratic  principles.  These 
programs  are  proving  to  be  an  investment 
paying  dividends,  far  beyond  their  cost,  in 
enhancing  our  own  security  and  in  providing 
a  basis  for  world  peace  and  prosperity.  The 
job  is  not  yet  done,  the  goals  are  not  yet 
reached;  but  the  progress  so  far  achieved 
makes  possible  in  1951  a  substantial  reduc- 
tion in  the  dollar  costs  of  these  programs. 
Total  expenditures  for  international  affairs 
and  finance  are  estimated  at  4.7  billion  dol- 
lars, a  reduction  of  1.3  billion  dollars  from 
1950.  This  amount  reflects  the  minimum 
requirements  for  these  programs,  and  their 
success  to  date  emphasizes  the  compelling 
need  to  carry  them  through  on  the  planned 
basis. 

As  progress  is  made  toward  achieving  the 
short-range  objectives  of  recovery  and  relief, 
two  other  international  activities  assume  in- 
creasing importance.  First,  I  am  renewing 
the  recommendation  for  a  program  of  tech- 
nical and  capital  assistance  to  underdevel- 
oped countries.  The  Budget  expenditures 
in  195 1  will  be  relatively  small  but  they  rep- 
resent a  step  of  great  significance  in  the 
encouragement  of  world  economic  expansion 
and  the  growth  of  world  trade,  which  are 


essential  to  our  national  prosperity.  Second, 
I  am  recommending  additional  funds  in 
1 95 1  for  the  mutual  defense  assistance  pro- 
gram, authorized  by  the  Congress  last  year, 
and  now  getting  under  way.  This  program 
is  a  necessary  supplement  to  economic 
growth  as  a  bulwark  against  aggression,  and 
is  an  integral  part  of  the  cooperative  effort 
to  assure  the  continued  independence  of  free 
nations. 

Expenditures  for  national  defense  must  be 
sufficient  to  provide  us  with  the  balanced 
military  strength  we  must  maintain  in  the 
present  world  situation,  at  a  level  which  can 
be  sustained  over  a  period  of  years.  In 
195 1,  expenditures  for  national  defense  are 
estimated  at  13.5  billion  dollars,  an  increase 
of  about  400  million  dollars  over  1950.  The 
present  level  of  expenditures  is  substantially 
less  than  was  anticipated  a  year  ago,  and  is 
the  result  of  careful  Budget  planning  and 
vigorous  administrative  action. 

Expenditures  for  veterans'  services  and 
benefits  are  estimated  at  6.1  billion  dollars 
in  195 1,  a  decline  of  825  million  dollars  from 
1950.  Our  veterans'  programs  represent 
commitments  which  the  Government  has 
made  to  those  who  have  served  in  its 
armed  forces,  and  these  commitments  must 
be  met.  While  that  part  which  represents 
pensions,  medical  care,  and  similar  services 
will  continue  to  rise  gradually,  the  program 
of  readjustment  benefits  was  intended  to  be 
transitional,  and  we  should  plan  on  a  con- 
tinued reduction  in  its  cost  during  the  next 
few  years. 

Interest  on  the  public  debt  is  estimated  at 
5.6  billion  dollars  in  195 1,  slightly  lower 
than  in  1950.  This  is,  of  course,  a  fixed 
commitment  of  the  Government,  and  repre- 
sents predominantly  the  cost  of  financing  the 
last  war. 

All  expenditures,  other  than  those  for  in- 
ternational, national  defense,  and  veterans' 
programs,  and  interest  on  the  debt,  total 


48 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


12.5  billion  dollars,  about  29  percent  of  the 
total  Budget.  This  is  an  increase  of  about 
I  billion  dollars  from  estimated  expenditures 
for  these  purposes  in  1950.  They  include 
many  important  activities  such  as  the  Atomic 
Energy  Commission  and  the  Maritime  Com- 
mission, which  are  closely  related  to  our 
national  security.  Furthermore,  they  repre- 
sent those  positive  functions  which  Govern- 
ment must  fulfill  if  we  are  to  have  a  healthy 
and  growing  economy.  Federal  expendi- 
tures for  these  purposes  in  195 1  are  expected 
to  constitute  a  substantially  lower  percentage 
of  the  total  national  income  than  the  corre- 
sponding percentage  in  1939. 

The  12.5  billion  dollars  which  this  Budget 
provides  for  these  domestic  programs, 
viewed  item  by  item,  reflects — and  has  been 
generally  recognized  by  the  Congress  to  re- 
flect— the  necessary  contributions  of  the  Fed- 
eral Government  in  our  modern  economy. 
The  major  question  in  my  mind  is  not 
whether  we  are  doing  too  much,  but  whether 
the  budgetary  requirements  of  the  major 
national  security  and  war-connected  pro- 
grams have  constrained  us  to  undertake  too 
little  toward  supporting  and  stimulating  the 
realization  of  our  country's  great  potential 
development.  It  must  be  recognized  that 
failure  to  support  essential  Federal  activities 
would  impede  the  continued  expansion  upon 
which  the  well-being  of  our  economy  and  the 
soundness  of  the  Government's  fiscal  posi- 
tion alike  depend. 

Expenditures  in  this  Budget,  designed  to 
assist  economic  development  in  the  categories 
of  housing  and  community  development, 
agriculture,  natural  resources,  transportation 
and  communication,  finance,  commerce,  and 
industry,  and  labor,  together  amount  to  7.9 
billion  dollars,  19  percent  of  total  estimated 
expenditures. 

We  must  push  ahead,  for  example,  with 
atomic  energy  development,  and  the  Budget 


provides  817  million  dollars  for  this  purpose. 
We  must  maintain  and  develop  adequate 
aviation  facilities  and  services,  for  which  230 
million  dollars  is  included.  The  Federal 
Government  should  continue  to  assist  States 
in  developing  an  adequate  national  highway 
system;  Federal  expenditures  for  this  pur- 
pose are  estimated  at  507  million  dollars  in 
1 95 1.  The  development  of  our  rivers  for 
flood  control,  navigation,  reclamation, 
power,  and  other  uses  is  of  fundamental 
importance  for  economic  growth,  and  is 
largely  a  Federal  responsibility,  for  which 
this  Budget  includes  1.4  billion  dollars.  The 
Government  is  substantially  aiding  private 
industry  and  local  communities  in  producing 
more  and  better  housing  at  prices  people 
can  afford;  1.3  billion  dollars  is  included  for 
these  purposes.  Over  800  million  dollars  is 
provided  to  further  the  conservation  of  farm 
lands  and  to  make  loans  for  extending  elec- 
tricity to  farms. 

There  is  one  aspect  of  these  expenditures 
which  has  properly  received  widespread  at- 
tention by  the  Congress  and  the  public  as 
having  an  important  bearing  on  the  long-run 
fiscal  position  of  the  Government.  Many 
expenditures  represent  the  acquisition  of  as- 
sets which  are  recoverable  or  will  give  con- 
tinuing returns  in  future  years,  and  which 
in  normal  business  accounting  would  not 
usually  be  considered  as  current  expense.  It 
is  estimated  that  in  the  1951  Budget  such 
expenditures,  excluding  military  public 
works  and  equipment,  amount  to  about  5.6 
billion  dollars,  of  which  about  4  billion  dol- 
lars is  anticipated  to  be  in  the  recoverable 
category.  In  the  case  of  the  Federal  Govern- 
ment, in  contrast  to  private  business,  these 
investment  expenditures  cannot  properly  be 
financed  differendy  from  other  items  in  the 
Budget.  But  their  size  and  nature  are  im- 
portant in  evaluating  the  strength  of  our 
fiscal  position.     A  special  analysis  of  the 


49 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


nature  and  extent  of  investment  expendi- 
tures is  included  in  part  III  of  the  Budget 
this  year  for  the  first  time. 

Economic  growth  must  be  matched  by 
comparable  development  in  the  social  w^ell- 
being  and  living  standards  of  all  our  people. 
Continued  progress  depends  in  large  part 
upon  the  increasing  fulfillment  of  the  respon- 
sibilities of  Government  in  such  fields  as 
social  welfare,  education,  and  public  health. 
In  addition  to  the  transfer  of  594  million  dol- 
lars of  pay-roll  taxes  to  the  railroad  retire- 
ment trust  fund,  the  Budget  proposes  total 
funds  of  2.1  billion  dollars  for  social  welfare, 
health,  and  security,  and  434  million  dollars 
for  education  and  general  research,  about 
one-sixteenth  of  total  Federal  expenditures. 
These,  too,  are  investments  in  the  future  of 
our  country.  Over  80  percent  of  these  funds 
is  for  grants  to  States  and  localities. 

The  remaining  programs,  classified  under 
general  government,  are  estimated  to  cost  1.3 
billion  dollars.  These  funds  provide  for 
over-all  legislative,  judicial,  and  executive 
operations  of  the  Government,  and  for  vari- 
ous central  services  such  as  the  maintenance 
of  public  buildings.  Included  in  this  total 
are  424  million  dollars  for  tax  collection  and 
other  financial  operations,  and  333  million 
dollars  for  the  Government's  payment  to  the 
civil  service  retirement  fund. 

The  detailed  activities  of  Government 
agencies  in  all  fields  have  been  closely  re- 
viewed to  eliminate  all  but  the  minimum 
operations  required.  This  has  made  neces- 
sary the  denial  of  request  after  request  for 
additional  funds  which — ^taken  by  them- 
selves and  in  the  judgment  of  particular 
groups  affected — are  highly  meritorious. 
The  progress  made  in  this  Budget  in  revers- 
ing the  trend  toward  higher  expenditures 
and  in  achieving  a  substantial  reduction  has 
been  made  possible  only  by  the  most  vigorous 


application,  in  every  area,  of  a  policy  of  hold- 
ing the  numerous  activities  to  essential  levels. 

In  a  very  few  cases — ^mainly  middle-in- 
come housing — ^the  exigencies  of  particular 
situations  justify  the  recommendation  of  lim- 
ited new  domestic  programs.  In  addition, 
I  am  renewing  proposals  previously  made 
for  aid  to  education  and  expanded  public 
assistance,  primarily  in  the  form  of  grants 
to  States,  and  for  the  enactment  of  certain 
social  insurance  legislation  which  would  be 
financed  primarily  by  special  taxes.  Beyond 
this,  however,  I  am  recommending  no  new 
programs  which  would  require  large  expend- 
itures in  future  years,  above  the  amounts 
included  in  this  Budget.  In  the  case  of  ex- 
isting programs,  while  vigorous  effort  is  be- 
ing devoted  to  improving  their  efficiency, 
they  must  in  the  public  interest  be  given 
sufficient  funds  to  allow  effective  operation. 

The  rise  from  2.5  billion  dollars  in  1950 
to  3.1  billion  dollars  in  1951  in  estimated 
civil  public  works  expenditures,  including 
grants  and  loans,  reflects  almost  entirely  the 
minimum  requirements  of  projects  and  pro- 
grams now  under  way.  With  respect  to  Fed- 
eral public  works  in  such  fields  as  reclama- 
tion, flood  control,  and  rivers  and  harbors, 
this  Budget  does  not  provide  for  starting  any 
new  projects,  despite  the  pressures  that  exist 
for  initiating  construction  of  a  large  number 
of  additional  projects  which  are  already  au- 
thorized. Federal  grants  to  States  for  public 
works  have  also  been  generally  limited  to  the 
necessary  costs  required  to  carry  forward 
continuing  construction  programs,  primarily 
those  for  highways,  airports,  and  hospitals. 

Our  policies  with  respect  to  expenditures 
must  of  course  remain  flexible  to  meet  shifts 
in  international  or  economic  conditions. 
The  policies  I  have  outlined  represent  the 
sound  and  necessary  basis  for  Budget  pro- 
grams in  the  light  of  the  oudook  at  this  time. 


50 


Harry  S.  Truman,  7950 


Jan.  9    [9] 


MANAGEMENT  IMPROVEMENT 
PROGRAM 

The  past  year  has  been  one  of  outstand- 
ing achievement  in  improving  the  organiza- 
tion and  operating  methods  of  the  executive 
branch.  This  is  an  important  fact  to  note 
in  the  Budget  Message  as  the  accomplish- 
ment of  better  management  in  Government 
is  essential  to  the  fulfillment  of  our  estab- 
lished fiscal  goals.  It  is  also  a  responsibility 
to  which  every  official  must  give  increased 
attention  if  the  public  is  to  receive  a  full 
return  on  its  tax  dollar.  Action  has  been 
taken  on  many  fronts.  To  cite  but  a  few: 
the  Department  of  State  has  been  reorga- 
nized; improved  operating  methods  have 
been  installed  in  the  Treasury  Department; 
further  progress  toward  unification  has  been 
made  with  the  creation  of  a  Department  of 
Defense;  central  service  functions  of  the 
Government  have  been  reorganized  in  the 
General  Services  Administration;  significant 
reorganizations  have  occurred  in  the  Post 
Office  Department,  the  Department  of  Com- 
merce, and  the  Civil  Service  Commission. 

In  cooperation  with  the  Congress,  I  intend 
to  continue  a  vigorous  program  to  achieve 
further  improvements  in  governmental 
management. 

One  phase  of  this  program  requires  the 
enactment  of  legislation  and  the  approval  of 
reorganization  plans.  During  the  coming 
year  I  recommend  that  the  Congress  enact 
basic  personnel  legislation  to  make  possible 
further  improvements  in  the  way  the  Gov- 
ernment recruits,  trains,  and  supervises  its 
employees.  I  also  recommend  that  the  Con- 
gress take  action  to  allow  the  Post  Office  to 
maintain  its  own  accounts  and  conduct  its 
financial  affairs  on  a  businesslike  basis  and 
to  permit  appointment  of  postmasters  by  the 
Postmaster  General. 


During  the  session  I  shall  transmit  to  the 
Congress  a  number  of  reorganization  plans. 
The  objective  of  these  plans  will  be  the  es- 
tablishment of  clear  lines  of  responsibility 
and  authority  for  the  management  of  Gov- 
ernment activities  and  the  more  effective 
grouping  of  Government  programs  within 
departments  and  agencies. 

A  second  phase  of  the  management  im- 
provement program  includes  Government- 
wide  activities  in  which  all  agencies  partici- 
pate. Major  undertakings  in  this  area  are 
the  installation  of  more  efficient  property  and 
records  management  practices  under  the 
leadership  of  the  General  Services  Adminis- 
tration; strengthening  of  personnel  manage- 
ment activities  under  the  leadership  of  the 
Civil  Service  Commission;  and  institution, 
under  the  sponsorship  of  the  Bureau  of  the 
Budget,  of  systematic  review  by  all  agencies 
of  operating  effectiveness  and  economy  as 
required  by  the  Classification  Act  of  1949. 
In  addition,  more  modern  accounting  prac- 
tices are  being  installed  throughout  the  Gov- 
ernment under  the  guidance  of  a  joint  com- 
mittee consisting  of  the  Secretary  of  the 
Treasury,  the  Comptroller  General  and  the 
Director  of  the  Budget. 

In  the  field  of  programing  and  budgeting, 
the  progress  made  toward  presentation  of 
this  195 1  Budget  on  a  "performance"  basis 
is  an  example  of  results  stemming  from  the 
improvement  program.  An  examination  of 
the  body  of  this  document  will  indicate  a 
substantial  change  from  that  of  previous 
years.  The  activities  for  which  funds  are 
recommended  are  described  so  that  the  Con- 
gress and  the  citizens  may  see  more  clearly 
the  relationship  between  the  activities  to  be 
performed  and  the  costs  of  those  activities. 
Future  Budget  documents  will  include  addi- 
tional improvements.  Some  of  these  will 
reflect  current  efforts  both  to  strengthen  and 


[p]    Jan.  9 


Public  Papers  of  the  Presidents 


simplify  Government  accounting  and  to  de- 
velop better  measures  of  work  performance. 
Others  will  provide  additional  kinds  of  anal- 
yses to  enable  examination  and  understand- 
ing of  the  Budget  from  different  standpoints. 

The  third  aspect  of  the  management  im- 
provement program  is  the  work  being  done 
by  individual  departments  and  agencies.  I 
have  instructed  each  department  and  agency 
head  to  inaugurate  an  aggressive  program 
of  management  improvement  in  his  depart- 
ment. These  departmental  programs  have 
been  reviewed  in  terms  of  their  relation  to 
financial  requirements  and  their  contribution 
to  the  solution  of  known  problems.  I  will 
announce  shortly  certain  areas  to  which 
priority  will  be  given  in  the  management 
improvement  work  of  the  executive  branch 
during  the  year  1950.  The  special  fund  for 
management  improvement  which  was  au- 
thorized by  the  Congress  last  year  will  be 
utilized  to  carry  out  some  of  the  specific 
projects.  In  following  through  to  secure 
results  from  this  entire  program  I  will  have 
the  assistance  and  advice  of  my  Advisory 
Committee  on  Management  Improvement. 

Under  our  Federal  form  of  government, 
many  public  services  are  the  common  con- 
cern of  Federal,  State,  and  local  government. 
Continuing  attention  needs  to  be  given  by 
all  levels  of  government  to  the  problems 
arising  from  the  interrelations  of  our  tax 
systems  and  the  administration  of  common 
governmental  functions.  Federal  and  State 
and  local  officials  are  currendy  studying  the 
possibilities  of  further  cooperative  arrange- 
ments in  tax  administration  in  order  to  re- 
duce costs  and  improve  coordination.  We 
are  also  cooperating  in  developing  legislative 
proposals  to  deal  with  several  current  prob- 
lems of  mutual  concern:  provision  of  certain 
local  services  to  Federal  personnel,  applica- 
tion of  local  taxes  to  personnel  and  transac- 
tions on  Federal  reservations,  and  the 
establishment  of  a  general  system  of  pay- 


ments to  State  and  local  governments  whose 
property-tax  base  has  been  reduced  by  Fed- 
eral acquisitions  of  real  estate. 

The  reports  of  the  Commission  on  Orga- 
nization of  the  Executive  Branch  of  the 
Government  have  provided  the  framework 
for  much  of  the  improved  organization  and 
management  which  has  been  achieved  and 
which  I  hope  to  achieve  during  the  coming 
year.  While  work  has  been  started  in  a 
number  of  the  areas  containing  the  greatest 
potential  for  economy  and  improved  opera- 
tions, many  further  legislative  and  adminis- 
trative actions  are  needed.  It  should  be 
realized  that  the  greater  effectiveness  and 
economy  and  better  service  to  the  public, 
which  come  from  improved  management, 
are  the  cumulative  result  of  a  great  many 
individual  actions.  Realization  of  those 
goals  requires  the  coordinated  and  unrelent- 
ing efforts  of  all  Federal  officials  and  em- 
ployees. We  must  continue  to  emphasize 
the  achievement  of  better  management  as 
an  important  part  of  the  job  of  public  service 
in  which  the  Congress  and  the  executive 
branch  are  engaged. 

BUDGET  RECEIPTS 

Budget  receipts  in  the  fiscal  year  1951  are 
estimated  at  37.3  billion  dollars  under  exist- 
ing tax  legislation,  457  million  dollars  below 
the  estimate  for  the  current  year.  Decreased 
collections  from  corporation  income  taxes 
account  for  the  principal  decline  in  receipts 
between  the  2  years,  reflecting  the  fact  that 
the  reduction  in  corporate  profits  from  the 
calendar  year  1948  peak  does  not  have  its 
full  effect  on  tax  receipts  until  the  fiscal  year 
195 1.  The  estimates  of  receipts  assume  eco- 
nomic activity  at  approximately  the  same 
level  as  at  the  present  time. 

I  will  shortly  transmit  to  the  Congress  my 
recommendations  for  changes  in  our  tax  laws 
to  provide  a  more  balanced  and  equitable 


52 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


Budget  Receipts 
[  Fiscal  years.     In  millions  ] 


1949 
actual 


Source 
Direct  taxes  on  individuals: 

Individual  income  taxes $17,  929 

Estate  and  gift  taxes 797 

Direct  taxes  on  corporations: 

Corporation  income  taxes 11,  343 

Excess  profits  taxes 211 

Excises 7>  551 

Employment  taxes: 
Existing  legislation: 

Federal  Insurance  Contributions  Act i»  690 

Federal  Unemployment  Tax  Act 223 

Railroad  Retirement  Tax  Act 564 

Railroad  Unemployment  Insurance  Act 10 

Proposed   legislation: 

Medical   care   insurance 

Improvement  of  old-age  and  survivors  insurance 

Customs 384 

Miscellaneous  receipts: 

Existing    legislation 2,072 

Proposed  legislation 

Deduct: 

Appropriation  to  trust  funds: 

Existing    legislation ~"ii  ^9° 

Proposed   legislation: 

Medical    care    insurance 

Improvement  of  old-age  and  survivors  insurance 

Refunds    of   receipts — 2,  838 


1950 
estimated 

%i7>  971 
697 

11,075 

100 

7,631 


2,245 

223 

570 

10 


375 


I,  28 


—2,  245 


—  2,  177 


I95I 

estimated 


$18,246 
692 

10,458 

60 

7,642 


2,515 

224 

594 
10 

250 
1,200 

375 

1,096 
60 


—2,  515 

—250 
—  1,200 
—2, 151 


Budget  receipts 38,  246  37,  7^3  37, 3o6 

Note. — ^Estimated  receipts  for  1951  exclude  new  tax  proposals,  except  for  recommended  changes  in  em- 
ployment taxes  and  miscellaneous  receipts. 


tax  structure  and  to  increase  Federal  reve- 
nues. The  net  increase  in  revenues  during 
1 95 1  will  be  substantially  smaller  than  in 
subsequent  years,  owing  to  the  time  required 
for  some  of  the  changes  to  become  fully 
effective. 

Direct  taxes  on  individuals, — Receipts 
from  the  income  tax  on  individuals  exceed 
those  from  any  other  tax.  The  total  of  18.9 
billion  dollars  estimated  for  1951  for  direct 
taxes  on  individuals  is  practically  unchanged 
from  the  1950  total,  and  reflects  continued 
high  levels  of  employment  and  income. 

Direct  taxes  on  corporations, — ^The  fiscal 
year  1951  estimate  of  receipts  from  taxes  on 
corporations  is  10.5  billion  dollars.  During 
the  fiscal  year  1951  corporations  will  pay 


income  tax  on  the  profits  earned  during  the 
calendar  years  1949  and  1950.  The  decline 
in  profits  from  the  peak  level  of  1948  will 
therefore  adversely  affect  these  receipts  for 
the  fiscal  year  1951. 

Excises  and  customs, — ^Under  present  laws 
very  litde  change  is  anticipated  in  collections 
of  excise  taxes  and  customs. 

Employment  taxes.— Tht,  tax  rate  for  old- 
age  and  survivors  insurance  was  increased 
from  I  to  1 54  percent  on  the  first  of  this 
month;  hence  the  receipts  estimate  for 
1950  includes  taxes  based  upon  both  the  old 
rate  and  the  new.  Receipts  for  195 1  under 
existing  legislation  represent  a  full  year's 
collection  at  the  new  higher  rate. 

I  have  recommended  expansion  and  im- 


53 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


provement  of  the  old-age  and  survivors  in- 
surance system  and  a  nev^  program  of 
medical  care  insurance.  It  is  estimated  that 
the  additional  taxes  to  be  collected  for  these 
programs  will  amount  to  1.4  billion  dollars 
in  1 95 1.  Since  these  sums  w^ill  be  trans- 
ferred immediately  to  trust  accounts,  Budget 
receipts  will  not  be  increased. 

Miscellaneous  receipts, — Miscellaneous  re- 
ceipts have  been  declining  steadily  since 
1947,  primarily  because  of  the  drop  in  sales 
of  surplus  property  originally  acquired  for 
war  purposes.  During  195 1  receipts  from 
surplus  property  will  be  only  about  o.i  bil- 
lion dollars  compared  to  the  peak  of  2.9 
billion  dollars  in  1947. 

There  are  other  decreases  in  the  estimates 
of  miscellaneous  receipts  which  are  in  the 
nature  of  changes  in  reporting.  Certain 
receipts,  notably  of  the  Farmers*  Home  Ad- 
ministration and  of  the  public  housing  pro- 
gram, were  formerly  deposited  into  miscel- 
laneous receipts,  but  are  now  deducted  from 
the  expenditures  of  the  programs  involved. 
These  changes,  of  course,  have  no  effect  on 
the  surplus  or  deficit. 

The  estimate  of  miscellaneous  receipts  for 
195 1  reflects  my  recommendation  that  legis- 
lation be  enacted  to  permit  the  acceleration 
of  capital  repayment  by  the  Federal  home 
loan  banks.  An  increase  in  patent  fees  is 
also  necessary  to  make  the  Patent  Office  more 
nearly  self-supporting. 

Refunds  of  receipts, — Refunds  for  195 1  are 
estimated  at  about  the  same  level  as  for  the 
current  year,  0.7  billion  dollars  less  than  in 
1949.  The  decline  is  the  result  of  the  fact 
that  1949  refunds  were  unusually  high  be- 
cause of  the  retroactive  features  of  the  Reve- 
nue Act  of  1948. 

PUBLIC  DEBT 

The  public  debt  amounted  to  252.8  billion 
dollars  on  June  30, 1949.    Estimated  Budget 


deficits  of  5.5  billion  dollars  in  the  fiscal  year 
1950  and  5.1  billion  dollars  in  the  fiscal  year 
195 1,  together  with  certain  minor  adjust- 
ments, will  cause  the  debt  to  increase  to  263.8 
billion  dollars  by  the  end  of  195 1.  In  195 1, 
about  2.5  billion  dollars  of  the  increase  in 
the  debt  will  be  financed  by  new  investments 
in  Federal  securities  by  trust  accounts  and 
other  Government  agencies. 

BUDGET  EXPENDITURES  AND 
AUTHORIZATIONS 

A  summary  of  Budget  expenditures  ac- 
cording to  the  broad  programs  or  functions 
for  which  the  money  is  spent  is  set  forth  in 
the  table  below.  This  table  includes  all  ex- 
penditures from  the  general  and  special 
funds  of  the  Treasury  and  the  net  expendi- 
tures of  wholly  owned  Government  corpora- 
tions. Expenditures  from  the  trust  funds 
are  excluded. 

All  expenditures  flow  from  obligational 
authority  enacted  by  the  Congress.  The  net 
new  appropriations  and  other  authorizations 
recommended  for  the  fiscal  year  1951  total 
40.5  billion  dollars.  Of  this  total,  33.1  billion 
dollars  is  now  formally  recommended  for 
action  by  the  Congress,  while  7.4  billion  dol- 
lars is  tentatively  estimated  for  later  submis- 
sion. In  addition,  this  Budget  includes  ap- 
propriations of  4.5  billion  dollars  to  liquidate 
obligations  incurred  under  prior  year  con- 
tract authorizations,  more  than  half  in  pro- 
grams for  the  national  defense. 

Since  contracts  with  industry  must  be  let 
well  ahead  of  deliveries,  a  considerable  lead 
time  is  required  for  the  economical  operation 
of  many  Government  programs.  This  is 
especially  true  for  public  works  and  military 
procurement.  Financial  obligations  incurred 
in  prior  years,  therefore,  will  have  already 
fixed  a  substantial  part  of  the  estimated 
Budget  expenditures  for  1951.  Of  the  total 
Budget  expenditures  of  42.4  billion  dollars 


54 


Harry  S.  Truman,  ig$o 


Jan.  9    [9] 


Budget  Expenditures  and  Authorizations  by  Major  Function 
[  Fiscal  years.    In  millions  ] 


1949 

Function  actual 

International  affairs  and  finance $6,  462 

National  defense 11,  914 

Veterans'  services  and  benefits 6,  669 

Social  welfare,  health,  and  security i,  907 

Housing  and  community  development 282 

Education  and  general  research 70 

Agriculture  and  agricultural  resources 2,  512 

Natural  resources i»  512 

Transportation  and  communication i,  622 

Finance,  commerce,  and  industry 120 

Labor 193 

General  government i,  170 

Interest  on  the  public  debt 5,  352 

Reserve  for  contingencies 

Adjustment  to  daily  Treasury  statement 272 


Expenditures 

1950 
estimated 

$5, 964 

13.148 

6,905 

2,297 

I,  006 

125 

2,671 

1,845 

1,894 

225 

219 

1,223 

5,725 
50 


1951 
estimated 

$4,7" 

13,545 
6,  080 
2,714 
1,329 

434 
2,  206 
2,218 
1,682 

212 

243 
I,  267 
5,625 

175 


"New  obligational 
authority  for  igsi 

Appropria- 
tions 


$4,  505 

'11,359 

5,847 

2,  625 

117 

117 

875 

1,594 

973 

60 

266 

1,231 

5,625 

200 


Other 

$530 

1,441 

165 

704 

7 
580 

370 
673 
250 


Total 49,  057        43,  297        42,  439      '^35,  73i  4,  723 

^In  addition  851  million  dollars  of  reserved  1950  contract  authorizations  and  22  million  dollars  of  1950 

appropriations  will  be  available  for  1951  programs. 

^This  Budget  also  includes  4,514  million  dollars  of  appropriations  to  liquidate  prior  year  contract 

authorizations. 


estimated  for  1951,  about  12.1  billion  dollars, 
29  percent,  will  be  payments  for  obligations 
incurred  in  1950  or  in  earlier  years;  the  re- 
mainder will  be  for  195 1  obligations. 

Net  new  appropriations  recommended  for 
1 95 1  are  1.6  billion  dollars  less  than  those 
estimated  for  1950.  They  represent  total 
appropriations  (including  permanent  appro- 
priations) less  those  to  be  used  to  liquidate 
prior  year  contract  authorizations.  New  con- 
tract authorizations  (which  will  require  later 
appropriations  to  liquidate)  totaling  3.4  bil- 
lion dollars  are  also  included  in  this  Budget, 
also  about  1.6  billion  dollars  less  than  the 
estimated  new  contract  authority  for  1950. 
Special  authorizations  to  use  the  proceeds  of 
Treasury  borrowing  in  the  financing  of  cer- 
tain Government  programs  are  included  in 
the  1 95 1  recommendations  to  the  amount 
of  1.4  billion  dollars.    This  represents  a  de- 


cline of  6  billion  dollars  from  the  1950  esti- 
mate for  this  type  of  authorization.  The  esti- 
mate for  1950,  however,  anticipates  action  by 
the  Congress  in  providing  supplemental  pub- 
lic debt  authorizations  of  2  billion  dollars  for 
the  Commodity  Credit  Corporation,  one-half 
billion  dollars  for  the  Reconstruction  Finance 
Corporation,  and  stand-by  borrowing  author- 
ity of  1.7  billion  dollars  for  the  Federal  Sav- 
ings and  Loan  Insurance  Corporation  and 
the  Federal  home  loan  banks. 

PROGRAMS 

The  following  sections  describe  the  pro- 
grams undertaken  in  each  of  the  major  func- 
tions of  the  Government  and  the  new 
proposals  I  am  making  in  this  Budget.  In 
addition,  this  year  for  the  first  time  the 
Budget  contains  (in  part  II)  improved  pres- 


55 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


entations  showing  in  detail  the  programs  and 
performance  of  all  Government  agencies. 

International  Affairs  and  Finance 

In  1 95 1,  as  in  every  year  since  the  war, 
the  cost  of  our  international  programs  will  be 
large  because  far-reaching  problems  remain 
to  be  solved.  Notable  progress  has  been 
made  toward  foreign  economic  recovery,  but 
some  of  the  most  difficult  steps  lie  ahead. 
The  threat  of  aggression  still  exists,  requir- 
ing continued  efforts  to  bolster  the  defenses 
of  free  nations.  The  economic  underdevel- 
opment of  great  areas  of  the  world  deprives 
their  peoples  of  the  adequate  living  stand- 
ards in  which  free  institutions  can  flourish, 
and  deprives  other  peoples  of  needed  re- 
sources which  expanded  world  trade  could 
bring. 

The  1 95 1  Budget  provides  for  4.7  billion 
dollars  of  expenditures  on  our  international 
activities.  This  is  1.3  billion  dollars,  or 
more  than  20  percent,  below  estimated  ex- 
penditures in  1950.  This  very  substantial 
reduction  reflects  the  declining  costs  of  our 
recovery  and  relief  programs  as  they  have 
stimulated  and  supported  economic  recon- 
struction, rising  living  standards,  and  grow- 
ing political  stability.  My  recommendations 
for  1 95 1  represent  the  minimum  amount 
required  to  carry  our  plans  forward  toward 
a  successful  conclusion.  The  continuing 
and  grave  uncertainties  which  remain  in  the 
world  situation  make  it  imperative  that  we 
be  prepared  to  adjust  our  efforts  to  accord 
with  developments.  If,  however,  we  make 
at  this  time  the  investment  necessary  to 
achieve  continued  economic  recovery,  I  ex- 
pect the  trend  in  total  expenditures  for  our 
international  activities  to  continue  down- 
ward in  subsequent  years. 

Recovery  and  relief  costs,  which  in  1951 
will  be  over  75  percent  of  international  ex- 
penditures, will  diminish  rapidly  as  recovery 

56 


programs  near  completion,  although  new 
measures  may  become  necessary  to  attain 
specific  objectives  in  particular  areas.  At 
the  same  time,  our  programs  for  stimulating 
foreign  economic  development  assume  in- 
creasing importance,  and  expenditures  for 
this  purpose  should  increase  somewhat  in 
future  years  as  political  conditions  stabilize 
and  opportunities  for  mutually  advantageous 
technological  improvement  and  productive 
investment  abroad  increase.  Furthermore, 
expenditures  for  foreign  military  assistance 
will  remain  substantial  for  several  years  as 
shipments  are  made  under  the  programs  au- 
thorized in  1950  and  proposed  for  1951. 

Conduct  of  foreign  affairs, — Expenditures 
in  195 1  for  the  State  Department,  through 
which  we  conduct  our  foreign  affairs,  will 
be  about  the  same  as  for  the  current  year. 
The  decline  of  war  claims  payments  will  be 
about  offset  by  increased  requirements  in 
other  programs,  notably  the  Department's 
recent  assumption  of  responsibilities  in  Ger- 
many. The  international  information  and 
education  program  will  continue  at  the  ex- 
panded level  to  be  reached  this  year. 

Our  Government  also  participates  in  many 
international  agencies,  principally  the  United 
Nations  and  its  affiliates.  Through  such 
participation  we  are  actively  engaged  in  a 
cooperative  and  world-wide  effort  to  build 
the  foundations  for  continued  peace  and  the 
social  and  economic  betterment  of  all  peo- 
ples. One  important  aspect  of  this  effort 
has  been  the  development  of  a  set  of  prin- 
ciples and  a  mechanism,  through  the  pro- 
posed International  Trade  Organization,  for 
facilitating  the  growth  of  world  trade  on  a 
multilateral  basis.  I  again  urge  that  the 
Congress  approve  the  charter  of  the  Inter- 
national Trade  Organization  and  pass  the 
necessary  implementing  legislation. 

European  recovery  program. — A  major 
problem  of  foreign  policy  today  is  the  fact 
that  certain  key  areas  of  the  world,  prin- 


Harry  S.  Truman,  ig^o 

International  Affairs  and  Finance 
[  Fiscal  years.    In  millions  ] 


Jan.  9    [9] 


Expenditures 

1949  {950  ipi 

actual       estimated     estimated 


$134  '$187  '$190 

38  58  49 


"New  obligational 
authority  for  ig^i 
Appropria- 
tions        Other 

$175         


4,040 
i»349 

'6 

—41 

73 


8 

288 

—57 
12 


289 
125 
197 


^  4,  062 
831 

^93 

-38 

70 

5 

15 

23 

71 
II 


160 

195 


3»250 
279 

^iii 

-38 

25 

4 

20 
3 

48 
8 

25 

645 

91 


31 


3, 100 
320 

115 


25 
4 


Program  or  agency 
Conduct  of  foreign  affairs: 

State  Department 

Participation  in  international  organizations  (pres- 
ent programs  and  proposed  legislation) 

Other 

International  recovery  and  relief: 
European  recovery  program  and  other  foreign  aid 
(present  programs  and  proposed  legislation)  . . . 

Aid  to  occupied  areas 

Aid   to  Korea   (present  programs  and  proposed 

legislation) 

Reconstruction  Finance  Corporation  (loan  repay- 
ment)   

Aid  to  refugees: 

International  Refugee  Organization 

Displaced  persons  program  (present  programs 

and  proposed  legislation) 

Palestine  refugees  (present  programs  and  pro- 
posed legislation) 

Other 

Foreign  economic  development: 

Export-Import  Bank  loans 

Inter- American  development 

Technical  assistance  to  underdeveloped  areas  (pro- 
posed legislation) 

Foreign  military  assistance: 
Mutual  defense  assistance  program  (present  pro- 
grams and  proposed  legislation) 

Greek-Turkish  aid  (acts  of  1947  and  1948) 

Assistance  to  China  (act  of  1948) 

Philippine  aid 

Total 6, 462  5. 964  4»  711         ^  4>  505  530 

^  Includes  transfer  from  funds  for  aid  to  occupied  areas. 
^  Less  than  one-half  million  dollars. 

®This  Budget  also  includes  518  million  dollars  of  appropriations  to  liquidate  prior  year  contract  author- 
izations. 


7 
35 

648 
45 


$3o 


500 


cipally  western  Europe,  are  faced  with  the 
necessity  of  making  fundamental  and  com- 
plex adjustments  to  the  far-reaching  changes 
in  their  trade  and  financial  relationships 
which  resulted  from  the  war.  The  great 
achievement  of  the  European  recovery  pro- 
gram to  date  has  been  to  help  these  countries 
to  recover  from  the  devastation  of  war,  to 


restore  living  standards,  and  to  maintain 
political  stability,  and  thus  to  place  them  in 
a  position  to  make  the  adjustments  that  are 
required. 

As  a  consequence  of  their  situation,  these 
countries  have  experienced  an  extraordinary 
need  in  recent  years  for  commodities  and 
equipment  which  could,  for  the  most  part. 


41-355-^65- 


57 


[g]    Jan.  9 


Public  Papers  of  the  Presidents 


be  supplied  only  by  this  country,  but  for 
which  they  were  not  able  to  pay  by  the 
export  of  goods  and  services.  If  we  had 
permitted  their  imports  to  sink  to  the  tem- 
porarily reduced  level  which  they  could 
finance,  it  would  have  drastically  reduced 
their  living  standards  and  invited  unrest  and 
destructive  economic  nationalism.  Instead, 
we  have  undertaken  a  planned  and  mutual 
effort  designed  to  achieve,  during  a  relatively 
short  period  of  United  States  assistance,  ex- 
panded foreign  production  and  trade,  an 
increase  in  exports  yielding  dollars  and  a 
lessening  need  for  imports  requiring  dollars, 
and  an  increased  international  flow  of  in- 
vestment capital,  thus  establishing  the  basis 
for  economic  growth  and  prosperity. 

The  European  recovery  program  has  made 
notable  progress  toward  these  objectives  since 
its  inception  almost  2  years  ago.  As  a  result, 
1 95 1  appropriation  requirements  for  all  seg- 
ments of  the  program,  including  that  portion 
of  our  aid  to  western  Germany  which  has 
previously  been  provided  separately  from 
funds  for  aid  to  occupied  areas,  will  be  more 
than  I  billion  dollars  below  the  amounts 
provided  by  the  Congress  for  the  same  pur- 
poses in  1950.  Serious  obstacles,  however, 
remain  to  be  surmounted.  A  substantial 
expansion  in  international  trade  and  invest- 
ment is  necessary  if  the  remaining  adjust- 
ments are  to  be  completed  without  involving 
serious  economic  and  political  dislocation. 

The  past  year  has  shown  that  this  task 
will  not  be  easy.  To  achieve  an  increased 
flow  of  trade  and  investment  will  require 
far-sighted  and  vigorous  steps  by  the  Euro- 
pean countries,  and  by  other  nations  as  well, 
including  our  own,  if  international  economic 
relationships  are  to  be  established  on  a  sound 
basis.  The  funds  included  in  this  Budget 
for  continuing  our  participation  in  the  Euro- 
pean recovery  program  are  an  essential  ele- 
ment for  further  progress. 

Other  international  recovery  and  relief 


programs, — Our  economic  aid  to  occupied 
areas  similarly  takes  the  form  of  recovery 
programs  designed  to  balance  their  trade  at 
levels  adequate  to  maintain  stability  without 
continued  United  States  assistance.  During 
the  current  fiscal  year,  responsibility  for  eco- 
nomic aid  to  western  Germany  has  been 
transferred  from  the  Department  of  the 
Army  to  the  Economic  Cooperation  Admin- 
istration, and  these  costs  will  be  met  in  1951 
from  European  recovery  program  funds. 
Army-administered  aid  to  occupied  areas  in 
1 95 1  will  therefore  be  limited  almost  wholly 
to  Japan  and  the  Ryukyu  Islands.  The  sub- 
stantial sums  invested  in  Japanese  recovery 
since  the  end  of  the  war  are  yielding  results 
which  permit  a  reduction  in  1951  outlays 
for  this  purpose,  and  bring  us  nearer  to 
termination  of  this  program. 

Although  I  have  urged  the  Congress  to 
authorize  a  similar  recovery  program  for  the 
Republic  of  Korea,  funds  provided  to  date 
permit  operation  at  only  a  relief  level.  Early 
enactment  of  the  legislation  now  pending 
will  permit  recovery  to  proceed  and  hasten 
the  date  when  our  aid  can  be  concluded. 
The  estimates  in  this  Budget  anticipate  a 
start  toward  recovery  in  the  remainder  of  the 
current  fiscal  year  and  substantial  further 
progress  in  1951. 

Our  remaining  international  requirements 
for  purposes  of  relief,  as  contrasted  with  re- 
covery, are  chiefly  those  for  assistance  to  ref- 
ugees. The  work  of  the  International 
Refugee  Organization  will  extend  through 
195 1 ;  its  remaining  work  load,  however,  is 
substantially  reduced,  allowing  a  65  percent 
reduction  in  our  contribution  below  the  1950 
level.  The  estimate  for  the  Displaced  Per- 
sons Commission  reflects  my  recommenda- 
tion that  the  present  Displaced  Persons  Act 
be  speedily  amended  to  make  it  fair  and 
workable.  The  provision  for  aid  to  Pales- 
tine refugees  is  the  present  estimate  of  our 
share  of  the  cost  of  the  proposed  United 


58 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


Nations'  program  for  restoring  to  productive 
activity  the  several  hundred  thousand  per- 
sons displaced  during  the  recent  conflict  in 
Palestine. 

Foreign  economic  development, — Since 
the  end  of  the  w^ar,  the  urgent,  though  tem- 
porary, requirements  for  international  re- 
covery and  relief  have  of  necessity  taken 
priority  over  longer-range  efforts  to  promote 
w^orld  economic  development.  The  devasta- 
tion left  by  w^ar  had  to  be  overcome.  The 
restoration  of  economic  strength  to  the 
world's  principal  industrial  areas  necessarily 
had  to  precede  any  real  economic  progress  in 
the  less-developed  parts  of  the  w^orld. 

Now  that  recovery  is  well  under  way,  we 
must  increasingly  turn  our  attention  to  meas- 
ures for  the  gradual  and  permanent  expan- 
sion of  world  production,  trade,  and  living 
standards  which  are  necessary  for  enduring 
world  peace.  Great  potentialities  for  such 
expansion  lie  in  the  underdeveloped  areas  of 
the  world,  with  resulting  benefits  to  the  peo- 
ples of  these  areas  and  to  other  countries, 
including  our  own. 

I  again  urge  the  Congress  to  authorize  a 
program  of  technical  assistance  to  enable  the 
peoples  of  these  areas  to  learn,  and  to  adapt 
to  their  own  needs,  modern  technological 
and  scientific  knowledge  in  such  fields  as 
agriculture,  health,  education,  transportation, 
and  industry.  The  achievements  of  our 
present  technical  assistance  activities  in  the 
American  Republics  and  in  Europe  attest  to 
the  success  and  practicability  of  this  ap- 
proach. This  Budget  provides  for  expendi- 
tures of  25  million  dollars  for  the  new  pro- 
gram. This  includes  the  United  States  share 
in  the  cost  of  the  program  for  technical  as- 
sistance recently  approved  by  the  United 
Nations. 

A  second  basic  requirement  for  economic 
progress  in  underdeveloped  areas  is  a  sub- 
stantial increase  in  the  inflow  of  capital  for 
productive  investment.    These  areas  should 


offer  opportunities  for  private  capital  and  pri- 
vate enterprise,  if  there  is  assurance  of  fair 
and  equitable  treatment  for  foreign  capital 
such  as  is  contained  in  the  commercial  trea- 
ties which  are  now  being  negotiated  with 
many  nations.  Nevertheless,  there  will  re- 
main certain  abnormal  risks  which  deter 
potential  investors,  and  I  again  urge  the  en- 
actment of  legislation  authorizing  an  experi- 
mental program  by  the  Export-Import  Bank 
to  guarantee  private  developmental  invest- 
ments against  such  risks. 

In  many  cases  the  flow  of  private  capital 
may  not  be  available  or  adequate,  or  particu- 
lar circumstances  may  make  governmental 
action  preferable.  In  such  cases,  the  invest- 
ment of  public  funds  may  be  needed, 
through  such  institutions  as  the  International 
Bank  for  Reconstruction  and  Development 
and  the  Export-Import  Bank.  These  insti- 
tutions are  currendy  directing  their  emphasis 
to  loans  for  developmental  purposes. 

Foreign  military  assistance, — Although 
economic  recovery  is  the  most  essential  con- 
dition to  the  maintenance  of  freedom  and 
stability  in  western  Europe  and  other  regions 
of  vital  importance  to  our  own  security,  eco- 
nomic vitality  alone  will  not  suffice  to  prevent 
aggression.  Stronger  military  defenses  are 
required,  but  these  nations  cannot  unaided 
strengthen  their  defenses  to  a  point  sufl&cient 
to  deter  aggression  without  seriously  retard- 
ing their  recovery  efforts.  To  solve  their 
dilemma  and  to  strengthen  our  own  defenses, 
we  agreed  last  year  to  unite  with  our  neigh- 
bors of  the  North  Adantic  community  in 
developing  and  putting  into  effect  an  inte- 
grated defense  plan  for  that  area. 

We  have  implemented  that  decision 
through  the  Mutual  Defense  Assistance  Act 
of  1949,  which  provides  for  the  supply  of 
arms  to  the  Treaty  nations  to  supplement 
their  own  defense  measures.  The  act  also 
continues  our  previous  program  of  assistance 
to  Greece  and  Turkey,  which  has  already 


59 


[p]    Jan.  9 


Public  Papers  of  the  Presidents 


achieved  substantial  success  in  ending  the 
guerrilla  threat  to  Greek  independence  and 
in  strengthening  Turkish  defenses.  In  addi- 
tion the  act  provides  for  military  aid  to  cer- 
tain other  areas  in  the  Middle  and  Far  East. 

The  North  Atlantic  Treaty  nations  are 
now^  proceeding  with  the  development  of  an 
integrated  defense  plan,  the  translation  of 
that  plan  into  equipment  and  supply  needs, 
and  a  realistic  determination  of  v^hat  each 
participant  can  do,  both  for  itself  and  for  the 
others,  in  meeting  those  requirements.  For 
the  current  year  the  Congress  provided  i  bil- 
lion dollars  for  military  assistance  to  the 
Treaty  nations,  and  359  million  dollars  for 
the  other  nations  covered  by  the  act.  For 
the  fiscal  year  195 1 1  am  recommending  new 
obligational  authority  of  i.i  billion  dollars, 
including  500  million  dollars  new  contract 
authority. 

Except  for  the  previously  authorized 
Greek-Turkish  program,  expenditures  in 
1950  will  be  relatively  low,  owing  to  late 
enactment  of  the  new  program  and  the  time 
required  for  agreement  on  joint  plans  and 
for  the  subsequent  determination  of  detailed 
requirements.  Expenditures  in  1951  for 
foreign  military  assistance  will  be  almost 
twice  as  great  as  in  1950,  and  may  rise  some- 
what further  thereafter,  owing  to  the  long 
delivery  time  characteristic  of  military 
procurement. 

Philippine  aid, — ^The  special  concern  and 
responsibility  we  feel  for  the  progress  of  the 
Philippine  Republic  have  taken  the  principal 
form,  since  the  war,  of  assistance  in  the 
physical  rehabilitation  of  damaged  facilities 
and  the  payment  of  war  damage  claims. 
The  cost  of  both  of  these  programs  will  de- 
cline sharply  in  1951  as  they  approach  com- 
pletion. We  will  continue  to  follow  with 
sympathetic  interest  the  achievements  of  the 
Philippine  people  and  to  assist  them  in  mak- 


ing   their    contribution    to    our    common 
objectives. 

National  Defense 

Our  expenditures  for  national  defense 
continue  to  be  the  largest  item  in  the  Budget. 
Under  current  world  circumstances,  in  which 
the  strength  of  the  United  States  is  making 
such  a  vital  contribution  toward  world  peace, 
we  must  continue  to  make  the  expenditures 
necessary  to  maintain  a  position  of  relative 
military  readiness.  At  the  same  time,  we 
must  plan  our  expenditures  for  national  de- 
fense so  that  we  will  achieve  our  purpose  at 
a  reasonable  cost,  well  within  our  capacity 
to  sustain  over  a  period  of  years. 

This  Budget  represents  a  further  step  to- 
ward these  objectives.  It  provides  for  active 
forces  in  a  high  state  of  training,  available 
for  immediate  use  if  necessary  and  as  a 
nucleus  for  rapid  expansion  in  the  event  of 
an  emergency,  and  for  reserve  forces,  orga- 
nized and  trained  for  early  mobilization  if 
necessary.  This  Budget  contemplates  the 
continued  development  of  planning  for  in- 
dustrial mobilization  and  the  accumulation 
of  a  stockpile  of  strategic  and  critical  ma- 
terials. It  continues  to  emphasize  research 
and  development  to  keep  our  military  tech- 
nology abreast  of  scientific  developments, 
and  procurement  of  newly  developed  weap- 
ons to  improve  the  equipment  of  the  ready 
forces.  At  the  same  time  this  program  is 
sufficiently  flexible  to  provide  a  basis  for 
rapid  changes  should  developments  in  tech- 
nology or  international  conditions  make 
them  necessary. 

The  recommendations  for  national  defense 
in  this  Budget  take  into  account  the  progress 
which  has  been  made  and  can  reasonably  be 
anticipated  in  the  programs  now  being  de- 
veloped for  the  effective  integration  of  our 


60 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


defense  plans  and  organizations  with  those 
of  other  North  Atlantic  Treaty  nations. 
These  defense  plans,  together  with  our  as- 
sistance in  strengthening  the  forces  of  these 
countries  through  the  mutual  defense  assist- 
ance program,  should  provide  an  increasing 
measure  of  security  to  free  peoples  on  both 
sides  of  the  Atlantic  as  well  as  elsewhere  in 
the  world. 

For  the  past  2  years  we  have  been  adjust- 
ing our  military  programs  to  achieve  a  bal- 
anced structure  which  can  be  maintained 
over  a  period  of  years  without  an  undue 
use  of  national  resources.  The  National 
Security  Act  of  1947  and  the  amendments 
to  that  act  in  1949  have  provided  a  sound 
organizational  framework  within  which  to 
work  toward  this  objective.  Vigorous  ac- 
tions have  been  taken  to  reduce  overhead, 
to  improve  efficiency,  to  eliminate  activities 
of  low  priority,  and  to  realign  our  armed 
forces  in  accordance  with  a  unified  strategic 
concept.  As  a  result,  the  estimate  of  obliga- 
tional  authority  for  the  195 1  program  of  the 
Department  of  Defense,  including  certain 
obligations  in  195 1  from  1950  authority,  is  13 
billion  dollars,  as  compared  with  14.2  billion 
dollars  recommended  for  1950  in  the  Budget 
a  year  ago. 

My  recommendations  in  this  Budget  pro- 
vide for  balanced  land,  naval,  and  air  forces. 
In  order  to  avoid  the  creation  of  forces  in- 
volving commitments  over  a  period  of  years 
beyond  what  we  could  reasonably  expect  to 
provide,  I  have  had  placed  in  reserve  certain 
authorizations  for  the  current  year  which 
were  provided  primarily  for  the  expansion 
of  the  Air  Force.  These  recommendations 
for  the  Defense  Department  for  195 1  con- 
template substantially  the  continuation  of 
the  revised  1950  program. 

The  estimated  obligational  authority  of 
13.7  billion  dollars  for  195 1  includes  4.0  bil- 


lions for  the  Army,  3.9  billions  for  the  Navy, 
and  4.4  billions  for  the  Air  Force.  In  addi- 
tion the  recommendations  include  0.8  billion 
for  other  Department  of  Defense  activities, 
including  retired  pay  and  proposed  legisla- 
tion; and  0.6  billion  for  other  national 
defense  activities,  mainly  stockpiling  of  stra- 
tegic and  critical  materials.  Of  this  obliga- 
tional authority  expected  to  be  required  in 
1 95 1,  1 1.4  billion  dollars  is  appropriations 
and  1.4  billion  dollars  is  contract  authoriza- 
tions, both  requiring  action  by  the  Congress. 
In  addition,  873  million  dollars  is  to  come 
from  appropriations  and  contract  authoriza- 
tions which  were  placed  in  reserve  in  1950 
and  are  available  for  1951  needs. 

The  estimated  expenditures  for  national 
defense  in  1951  of  13.5  billions,  including 
stockpiling  and  other  defense  items,  are  an 
increase  of  about  400  million  dollars  from 
estimated  expenditures  for  1950.  The  in- 
crease results  almost  entirely  from  procure- 
ment and  other  commitments  made  under 
authorizations  previously  approved  by  the 
Congress.  Expenditures  in  subsequent 
years  will  reflect  the  reduction  of  new  obli- 
gational authority  for  1951. 

Military  strength, — ^Extension  of  authority 
for  selective  service,  for  which  I  plan  to 
submit  legislation,  is  vital  as  a  positive  dem- 
onstration of  our  resolve  to  maintain  the 
strength  of  the  free  world.  With  it  we  will 
retain  our  ability  to  expand  our  armed  forces 
rapidly  in  an  emergency  and  will  also  insure 
adequate  replacements  to  maintain  the  re- 
quired strength  of  our  active  forces. 

The  extension  of  selective  service  author- 
ity will  provide  a  temporary  solution  to  the 
military  manpower  problem  of  the  active 
forces,  but  will  leave  unsolved  the  problem 
of  trained  manpower  for  our  reserve  forces. 
I  point  out  again  the  necessity  of  a  program 
of  universal  training  if  we  are  to  provide  on 


61 


[g]    Jan.  9 


Public  Papers  of  the  Presidents 


National  Defense 
[  Fiscal  years.    In  millions  ] 

Expenditures 


New  obligational 
authority  for  igsi 
1949  1950  19s  I       Appropria- 

actual       estimated     estimated         tions  Other 


Program  or  agency 
Department  of  Defense,  military  functions: 

Pay  and  support  of  active  duty  military  personnel . .     $4,  435        $4,  590        $4, 287        $4,  292 

Operation  and  maintenance  of  equipment  and  fa- 
cilities         3>  41 8 

Civilian  components 539 

Research  and  development 688 

Aircraft  procurement i,  230 

Construction  of  ships 295 

Major  procurement  other  than  aircraft  and  ships. .  198 

Military  public  virorks 

Industrial  mobilization,  service-wide  administra- 
tion and  finance,  interservice  projects,  and  Office 
of  Secretary  of  Defense 

Tentative  estimate  for  proposed  legislation  (in- 
cluding military  public  works) 

Unexpended  reimbursements  from  mutual  defense 

assistance  program 

Department  of  Defense,  civil  functions: 

Pay  of  retired  military  personnel 191 

Other 13 


151 


390 


3,224 
705 
630 

1,656 
314 
455 
299 


487 


—50 


3»294 
740 
606 

2,  081 
298 
678 
182 


491 

70 

-225 


241 
9 


345 

5 


3.406 

757 

^594 

81 

755 


535 
132 

356 


Activities  supporting  defense: 

Stockpiling  of  strategic  and  critical  materials 

National  Advisory  Committee  for  Aeronautics .  . . 

Reconstruction  Finance  Corporation 

Other 

Tentative  estimate  for  proposed  legislation:  Selec- 
tive Service  System 


299 

49 

-17 

35 


580 

56 

--81 

33 


650 
65 

-48 
22 


400 

48 


Subtotal II,  914 

Deduct  1950  obligational  authority  deferred  to  195 1 


13,148  13,545       ^11,381 


'$1,937 


240 


Subtotal,  Department  of  Defense 11,  548         12,  560         12,  852      ^  10,  908        ^  2, 177 


100 
15 


2,  292 
— 22  —851 

Total 11,914         13,148         13,545       *  II,  359  i,  44i 

^Includes  appropriations  of  22  million  dollars  made  for  the  fiscal  year  1950  which  will  be  available  for 
obligation  in  the  fiscal  year  1951. 

^  Includes  contract  authorizations  of  851  million  dollars  made  for  the  fiscal  year  1950  which  will  be  avail- 
able for  obligation  in  the  fiscal  year  195 1. 

*  This  Budget  also  includes  2,533  million  dollars  of  appropriations  to  liquidate  prior  year  contract  author- 
izations. 


a  continuing  basis  sufficient  numbers  of  men 
for  the  reserve  forces,  adequately  trained  to 
use  effectively  the  increasingly  complex  ma- 
chines of  war. 

The  total  personnel  assigned  to  combat 
forces  will  be  the  greatest  since  the  comple- 


tion of  the  demobilization  following  World 
War  II,  although  the  amounts  recommended 
for  195 1  will  provide  about  3  percent  fewer 
officers  and  enlisted  personnel  on  full-time 
active  duty  than  at  present.  In  1951,  it  is 
planned  to  continue  the  organized  units  of 


62 


Harry  S.  Truman,  ig^o 

Military  Pay  Strength 
[  In  thousands  ] 

Regular  and  reserves  on  jull-titne 
active  duty 

Dec,  31,  ig^i 

Mar.  31,              ig4g  average 

1948            (estimate)  (estimate) 

Anny 538                 639  630 

Navy  and  Marine  Corps 488                  492  461 

Air  Force 368                  416  416 

Total 1,394              1,547  i»507 


Jan.  9    [9] 


Reserves  in  drill  pay 
status 

1951 

October       average 

jg4g        (estimate) 

565  605 

213  256 

82  118 


860 


979 


the  reserve  forces  at  approximately  the 
strength  which  is  expected  to  be  achieved  by 
the  end  of  the  current  year,  but  with  better 
equipment,  facilities,  and  training. 

Under  these  recommendations  for  the 
Army,  this  Budget  wdll  provide  10  divisions, 
48  antiaircraft  battalions,  and  other  combat 
and  service  units.  Complementing  the  ac- 
tive Army  will  be  the  National  Guard  with 
350,000  personnel  and  the  Organized  Reserve 
with  255,000  in  regular  training. 

The  Navy  under  these  recommendations 
will  operate  an  active  naval  fleet  of  652  ships 
including  238  combatant  ships.  Six  Marine 
Corps  battalion  landing  teams  will  be  main- 
tained. A  total  of  5,900  aircraft  will  be  oper- 
ated by  the  active  forces,  and  2,500  by  the 
reserve  forces.  Supplementing  the  Navy  and 
Marine  Corps  will  be  204,850  members  of 
the  Naval  Reserve  and  50,772  of  the  Marine 
Corps  Reserve  in  regular  training. 

It  is  contemplated  that  the  active  Air  Force 
will  be  organized  into  48  groups  and  13  sepa- 
rate squadrons,  approximately  its  present 
strength.  The  Air  National  Guard  and  Air 
Force  Reserve  will  be  organized  into  27 
groups  and  25  base  wings,  respectively.  A 
total  of  8,800  airplanes,  from  trainers  to 
heavy  bombers,  will  be  operated  by  the  active 
Air  Force,  and  in  addition  3,400  by  the  Air 
National  Guard  and  the  Air  Force  Reserve. 

Pay  and  support  of  active  duty  military 
personnel, — ^The  services  of  the  officers  and 
enlisted  men  and  women  on  active  duty  will 


require  4.3  billion  dollars,  over  one-third  of 
Defense  Department  military  expenditures. 
This  will  provide  for  pay,  allowances,  sub- 
sistence, travel,  and  clothing  for  the  active 
forces  at  the  new  rates  of  pay  and  allowances 
set  by  the  Career  Compensation  Act  of  1949. 

Operation  and  maintenance  of  equipment 
and  facilities, — ^Estimated  expenditures  of  3.3 
billion  dollars  will  provide  for  operating  and 
maintaining  the  aircraft,  ships  and  vehicles, 
the  airfields,  training  centers,  hospitals,  de- 
pots, various  headquarters,  ports,  and  other 
stations.  Most  of  this  amount  will  be  re- 
quired for  the  pay  of  civilian  employees  in 
these  activities.  These  employees  constitute 
the  bulk  of  the  approximately  725,000  civil- 
ian employees  expected  to  be  engaged  in 
the  military  functions  of  the  Defense  Depart- 
ment in  1 95 1.  This  represents  a  substantial 
reduction  from  the  865,000  provided  for  in 
the  1950  Budget. 

Civilian  components. — I  have  consistently 
stressed  the  importance  of  the  civilian  com- 
ponents of  our  armed  forces.  The  Army 
and  Air  National  Guard  and  the  Air  Force, 
Army,  Navy,  and  Marine  Corps  Reserves 
will  require  estimated  expenditures  of  696 
million  dollars  in  195 1,  as  compared  with  the 
663  million  dollars  estimated  for  1950.  This 
will  provide  for  the  training  of  forces  total- 
ing 979,000,  which  approximates  the  number 
expected  to  be  in  regular  training  by  the 
end  of  the  current  year.  Continued  im- 
provements are  planned  in  the  equipment 


63 


[g]    Jan.  9 


Public  Papers  of  the  Presidents 


available  to  these  forces  and  in  the  effective- 
ness of  their  training  programs.  In  order 
to  overcome  a  major  deficiency  in  the  pro- 
gram for  these  forces,  I  recommend  that  the 
Congress  authorize  the  construction  of  addi- 
tional armories  and  similar  training  facilities. 
Funds  for  this  purpose  are  included  in  the 
amount  estimated  for  proposed  legislation. 

In  addition  the  Reserve  OflScers'  Training 
Corps  of  the  Air  Force,  Army,  and  Navy 
will  necessitate  expenditures  of  44  million 
dollars  in  195 1  to  provide  a  continuing 
source  of  junior  officers  for  the  reserve  forces 
and  a  portion  of  the  junior  officers  required 
by  the  active  forces.  This  w^ill  provide  an 
estimated  19,000  new  junior  officers  in  195 1, 
an  increase  of  2,000  over  the  estimate  for 
1950. 

Research  and  development, — ^The  experi- 
ences of  the  last  war  clearly  demonstrated  the 
decisive  importance  in  modern  warfare  of 
superior  weapons  and  equipment  and  of  the 
application  of  scientific  research  to  the  pro- 
duction of  new  weapons  and  techniques  of 
combat.  In  peacetime,  as  well  as  war,  sci- 
entific and  technical  advances  here  and 
abroad  make  possible  continuing  improve- 
ments in  the  performance  of  military  weap- 
ons, and  open  to  us  and  to  other  nations 
the  possibilities  of  new  types  of  weapons 
which  can  profoundly  affect  military  con- 
cepts and  tactics. 

We  must  continue  a  broad  and  active  pro- 
gram of  military  research  and  development. 
The  research  and  development  programs  of 
the  Department  of  Defense,  together  with 
the  related  programs  of  the  Atomic  Energy 
Commission,  the  National  Advisory  Com- 
mittee for  Aeronautics,  and  other  agencies 
of  the  Government,  have  as  their  objectives 
to  develop  improved  weapons  and  equip- 
ment for  the  modernization  of  our  military 
forces,  to  exploit  the  possibilities  of  new 
types  of  weapons  and  devise  defenses  against 
them,  and  to  stimulate  scientific  research 


likely  to  have  future  military  applications. 

Expenditures  of  the  Department  of  De- 
fense for  research  and  development  in  1951 
are  estimated  at  606  million  dollars,  slightly 
less  than  in  the  current  year.  This  amount 
includes  the  principal  costs  of  the  research 
and  development  activities,  except  for  the 
construction  of  research  facilities  and  the 
pay  and  support  of  military  personnel  en- 
gaged in  research  and  development  activities. 

Aircraft  procurement, — ^Procurement  of 
complete  aircraft  will  require  expenditures 
of  2.1  billion  dollars  in  1951  for  approxi- 
mately 2,300  airplanes,  compared  with  1.7 
billion  dollars  for  approximately  2,800  air- 
planes in  1950.  The  change  in  average  unit 
cost  reflects  the  increasing  complexity  and 
cost  of  individual  airplanes. 

The  recommendations  in  this  Budget  will 
provide  for  new  contracts  to  be  made  in  195 1 
totaling  2.0  billion  dollars,  compared  with 
1.9  billion  dollars  in  1950.  This  contem- 
plates that  851  million  dollars  of  1950  au- 
thorizations being  held  in  reserve  will  be 
applied  against  requirements  for  aircraft  to 
be  contracted  for  in  1951. 

Approximately  3.3  billion  dollars  of  un- 
expended authorizations  contracted  for  in 
1950  and  prior  years  will  be  carried  forward 
into  1 95 1.  This  carry-over,  together  with 
the  contracts  to  be  made  in  195 1,  will  provide 
5.3  billion  dollars  of  complete  aircraft  to  be 
delivered  and  paid  for  in  1951  and  subse- 
quendy.  Under  present  procurement  plans 
it  is  estimated  that,  in  addition  to  the  1951 
deliveries  of  2,300  airplanes,  approximately 
3,100  airplanes  will  be  delivered  in  1952  and 
later  years  from  authorizations  provided 
prior  to  that  time. 

Construction  of  ships, — ^Naval  ship  con- 
struction will  require  298  million  dollars  of 
estimated  expenditures  in  1951.  While  no 
new  obligational  authority  is  recommended 
in  this  Budget,  the  195 1  expenditures  will  be 
only  slighdy  less  than  the  314  million  dollars 


64 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


estimated  for  1950.  Various  substitutions 
and  adjustments  have  been  made  during  the 
past  year  in  the  uncompleted  portion  of  the 
shipbuilding  program.  In  addition  to  work 
completed  in  1951,  467  million  dollars  of 
presently  authorized  naval  ship  construction 
v^ill  remain  to  be  completed  in  1952  and 
later  years. 

Major  procurement  other  than  aircraft  and 
ships, — Major  procurement  other  than  air- 
craft procurement  and  ship  construction,  v^ill 
require  expenditures  of  678  million  dollars, 
a  50  percent  increase  over  the  estimate  for 
the  current  year  and  more  than  three  times 
as  much  as  in  1949.  This  will  provide, 
mainly,  combat  equipment  for  Army  and 
Marine  Corps  troops,  equipment  for  modern- 
izing the  fleet,  noncombat  vehicles  for  the 
three  military  departments,  and  ammuni- 
tion, torpedoes,  and  guided  missiles.  The 
substantial  increase  in  expenditures  in  1951 
results  largely  from  the  sizable  expansion  in 
this  program  during  the  past  2  years.  The 
new  obligational  authority  recommended  for 
195 1,  totaling  755  million  dollars,  will  be  at 
a  moderately  higher  level  than  1950.  This 
will  continue  the  larger  procurement  pro- 
gram embarked  on  in  1949  and  continued 
with  increases  in  1950. 

Amounts  included  for  combat  vehicles, 
artillery,  guns,  and  other  equipment  for 
Army  and  Marine  Corps  troops  will  permit 
substantial  modernization  of  the  equipment 
for  the  ready  forces,  and  will  reflect  the  prog- 
ress of  our  research  and  development  efforts. 
It  will  provide  an  orderly  step  in  the  replace- 
ment of  the  equipment  left  over  from  World 
War  II  which  by  the  end  of  195 1  will  be  at 
least  6  years  old  and  therefore  in  need  of 
substantial  improvements  in  design  as  a 
result  of  technical  and  scientific  develop- 
ments. The  equipment  for  modernizing  the 
fleet  will  give  emphasis  to  the  role  of  anti- 
submarine warfare. 

Military  public  wor\s, — Construction  of 


military  public  works  will  result  in  consid- 
erably smaller  expenditures  in  1951  than  in 
1950.  This  is  largely  because  only  part  of 
the  authorizations  proposed  in  my  1950 
Budget  were  enacted.  Exclusive  of  the  con- 
struction for  which  legislative  authorization 
will  need  to  be  made,  1951  expenditures  are 
estimated  at  182  million  dollars  compared 
with  299  million  dollars  for  1950.  This  will 
provide  for  such  construction  as  housing  for 
troops  and  their  families,  operational  facili- 
ties, and  facilities  for  research  and  develop- 
ment. The  obligational  authority  necessary 
for  additional  projects  not  yet  authorized  by 
legislation  are  included  in  the  tentative  esti- 
mate for  proposed  legislation. 

Industrial  mobilization,  service-wide  ad- 
ministration and  finance,  interservice  proj- 
ects, and  Office  of  the  Secretary  of  Defense. — 
The  Defense  Department's  part  in  industrial 
mobilization  planning  will  provide  for  main- 
taining machine  tools  and  stand-by  industrial 
plants,  for  tooling  of  pilot  production  lines, 
and  for  placing  educational  orders,  as  well  as 
for  continuing  industrial  mobilization  plan- 
ning studies  with  industry.  Expenditures 
for  this  purpose  are  estimated  at  109  million 
dollars  in  1951  compared  with  117  million 
dollars  in  1950. 

Other  Defense  Department  activities 
largely  of  service-wide  nature,  will  result  in 
expenditures  estimated  at  382  million  dollars, 
a  slight  increase  from  1950. 

Proposed  legislation  (including  military 
public  worlds), — In  order  to  provide  for  early 
starts  on  projects  and  activities  for  which 
legislation  is  proposed  I  am  including  an 
estimate  of  372  million  dollars  for  new  obli- 
gational authority,  the  largest  part  of  which 
is  for  military  public  works  for  both  regular 
and  reserve  forces. 

Unexpended  reimbursements  from  mutual 
defense  assistance  program, — The  Defense 
Department  receives  reimbursements  for 
some  of  the  equipment  which  it  takes  from 


41-355—65- 


65 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


its  stocks  to  ship  to  other  countries  under 
the  mutual  defense  assistance  program. 
The  manufacture  and  delivery  of  equipment 
out  of  these  reimbursements  will,  for  the 
most  part,  not  be  possible  before  the  follow- 
ing year.  Hence  these  reimbursements  will 
appear  as  credits  in  Defense  Department 
expenditures  in  1950  and  195 1.  As  de- 
liveries from  these  funds  are  made  in  future 
years,  compensating  increases  in  Defense 
Department  expenditures  will  result. 

Pay  of  retired  military  personnel, — 
Amounts  are  appropriated  annually  to  pro- 
vide the  cost  of  pay  for  retired  military 
personnel.  The  expenditures  of  345  million 
dollars  estimated  for  1951  provide  this  retire- 
ment pay  for  persons  whose  services  were 
for  the  most  part  rendered  prior  to  World 
War  II.  The  Government  is  at  present  in- 
curring obligations  for  future  payments  at  a 
rate  two  and  one-half  times  the  current  re- 
tired pay  expenditures. 

Stockpiling  of  strategic  and  critical  ma- 
terials,— ^The  stockpile  program  will  provide 
the  means  for  augmenting  the  supplies  of 
materials  expected  to  be  available  to  us  in 
time  of  emergency.  Accelerated  progress 
toward  present  objectives  will  be  made  dur- 
ing the  year  since  available  supplies  have 
increased  somewhat,  pardy  as  a  result  of 
orders  placed  previously  to  encourage  new 
development. 

I  recommend  500  million  dollars  of  new 
obligational  authority  for  this  program  in 
1 95 1.  This  amount  when  added  to  the  au- 
thority already  available  will  provide  total 
authority  for  deliveries  in  1951  and  later 
years  of  i.i  billion  dollars.  Expenditures 
are  expected  to  rise  from  580  million  dollars 
in  1950  to  650  million  dollars  in  1951. 

The  recommended  new  obligational  au- 
thority will  bring  the  funds  for  the  stockpile 
to  within  729  million  dollars  of  the  present 
total  objective  of  3.3  billion  dollars.  By  the 
end  of  195 1,  65  percent  of  the  stockpile  will 

OS 


be  delivered,  and  an  additional  13  percent 
will  be  under  contract  for  delivery  after  195 1. 
We  will  be  nearer  to  our  goals  for  the  mate- 
rials the  supply  of  which  would  be  the  most 
susceptible  to  interruption,  than  for  the 
stockpile  as  a  whole. 

National  Advisory  Committee  for  Aero^ 
nautics  and  other  activities  supporting  de- 
fense,— ^Expenditures  for  all  other  activities 
supporting  defense  will  total  43  million  dol- 
lars, after  deducting  48  milhon  dollars  of 
net  receipts  in  the  defense  activities  of  the 
Reconstruction  Finance  Corporation.  Slight 
increases  in  funds  will  be  necessary  for  the 
National  Advisory  Committee  for  Aeronau- 
tics to  move  forward  with  its  basic  research 
activities  in  aeronautics.  The  funds  for  the 
National  Security  Resources  Board  will  be 
maintained  at  about  the  present  level,  and  the 
cost  of  maintaining  industrial  reserve  plants 
by  the  General  Services  Administration  will 
decline  slightly.  Other  activities  provided 
for  include  the  Selective  Service  System  as 
well  as  various  defense  activities  of  other 
agencies.  The  defense  activities  of  the  Re- 
construction Finance  Corporation,  having  to 
do  with  rubber,  tin,  and  fibers,  will  result 
in  larger  receipts  than  expenditures,  mainly 
as  a  result  of  reduction  of  inventories. 

Veterans'  Services  and  Benefits 

Expenditures  of  6.1  billion  dollars  are  esti- 
mated for  veterans'  programs,  one-seventh 
of  all  Budget  expenditures  estimated  for 
195 1.  The  size  of  these  requirements  re- 
flects the  fivefold  increase  since  1939  in  the 
number  of  living  veterans  and  the  new  read- 
justment benefits  provided  for  the  World 
War  II  veterans,  as  well  as  the  increases  in 
rates  of  benefits  and  in  services  to  veterans 
generally. 

Most  of  the  expenditures  for  veterans' 
benefits  and  services  are  not  controllable  by 
the    ordinary    appropriation    process.    Ex- 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


penditures  depend  largely  on  how  many  of 
our  19,000,000  living  veterans,  and  how 
many  dependents  of  deceased  veterans,  apply 
and  qualify  for  aid  under  some  300  laws. 
The  variable  impact  of  veterans'  programs 
on  the  Budget  is  indicated  by  the  fact  that 
expenditures  for  the  fiscal  year  1950  are  now 
estimated  1.4  billion  dollars  higher  than  they 
were  estimated  a  year  ago.  As  a  result,  it 
now  is  necessary  not  only  to  request  restora- 
tion of  the  appropriations  for  the  Veterans 
Administration  eliminated  by  the  last  session 
of  the  Congress,  but  also  to  recommend  addi- 
tional supplemental  appropriations  for  1950. 

Expenditures  in  the  fiscal  year  195 1  are 
estimated  to  decline  825  million  dollars  from 
the  level  for  the  current  year.  In  the  next 
few  years  we  should  be  able  to  see  a  further 
substantial  reduction  in  Budget  expenditures 
for  veterans'  programs,  as  the  temporary 
readjustment  benefit  programs  taper  off  or 
expire  under  existing  legislation.  On  the 
other  hand,  it  should  be  recognized  that 
permanent  veterans'  laws  will  necessitate 
high  expenditures  for  many  years.  In  par- 
ticular, expenditures  for  pensions  and  for 
hospital  and  medical  care  will  continue  to 
increase  from  year  to  year. 

I  have  called  attention  in  previous  Mes- 
sages to  the  responsibilities  which  our  Nation 
has  toward  its  veterans  and  to  our  efforts  to 
assist  them  to  resume  as  nearly  as  possible 
their  normal  places  in  our  society.  We  have 
provided  a  comprehensive  and  complete  pro- 
gram of  special  Government  benefits  for  vet- 
erans of  all  wars — including  extensive 
economic  aids,  education  and  training  assist- 
ance, job  reinstatement  and  preference 
rights,  as  well  as  extensive  medical  and  other 
services.  Veterans,  as  citizens,  of  course,  are 
also  benefited  under  the  general  programs 
developed  in  the  last  15  years  to  maintain 
high  employment  and  to  advance  the  Na- 
tion's economic  welfare. 

Almost  2,000,000  veterans  with  disabilities 


incurred  in  the  service,  and  over  300,000 
families  of  veterans  deceased  from  service 
causes,  are  now  being  assisted  under  the 
veterans'  programs.  Our  primary  long-run 
obligations  in  providing  veterans'  benefits 
and  services  are  to  this  group.  We  must 
give  them  timely  help  to  surmount  the  eco- 
nomic and  physical  handicaps  sustained  as 
the  result  of  military  service  and  to  assist 
them  to  assume  the  full  responsibilities  of 
civilian  life.  In  the  last  2  years,  substantial 
additional  increases  in  compensation  rates 
to  dependents  and  to  veterans  of  World  Wars 
I  and  II  have  brought  the  rates  to  this  group 
reasonably  into  line  with  the  rise  in  the  cost 
of  living  since  1939. 

The  remaining  17,000,000  veterans  are 
practically  all  without  service  disabilities. 
The  Government  has  made  available  liberal 
benefits  to  help  all  veterans  of  the  two  world 
wars  make  the  transition  from  military  to 
civilian  life.  The  veterans  of  World  War 
II,  in  particular,  have  received  readjustment 
benefits  to  assist  them  in  obtaining  educa- 
tion, training,  jobs,  businesses,  and  homes. 
Most  of  the  citizen-soldiers  of  World  War  II 
returned  to  civilian  life  4  years  ago  and  have 
had  adequate  opportunity  to  reestablish 
themselves  in  their  communities.  The  orig- 
inal, sound  purposes  of  the  Servicemen's 
Readjustment  Act  have  largely  been  served. 
Some  of  the  benefits  under  the  act  have 
already  terminated  and  the  need  for  others, 
such  as  education  and  training  benefits,  is 
drawing  to  a  close. 

Veterans  without  service  disabilities  will 
continue  to  be  eligible  for  liberal  benefits 
under  the  permanent  veterans'  laws  after  the 
termination  of  temporary  programs.  At  the 
same  time,  these  veterans  are  eligible  in  many 
cases  for  benefits  under  the  general  social 
security  programs  of  the  Government.  Wc 
now  seek  to  improve  and  to  broaden  the  gen- 
eral social  security  programs  to  provide  pro- 
tection against  the  economic  hazards  of  old 


67 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


age,  disability,  illness,  and  unemployment. 
The  social  security  proposals  pending  in  the 
Congress  apply  to  all  the  people,  including 
veterans.  In  the  pending  bill  to  improve  the 
old-age  and  survivors  insurance  system,  vet- 
erans would  receive  credit  for  the  period  of 
military  service  during  World  War  II  toward 
benefits  under  the  system.  On  the  other 
hand,  proposals  are  also  pending  in  the  Con- 
gress to  increase  gready  the  special  programs 
for  veterans,  who  with  their  dependents  now 
comprise  about  two-fifths  of  our  total  popu- 
lation. There  is  real  cause  for  concern  that 
we  may  overlook  the  close  relationship  of 
these  two  systems  and  superimpose  on  the 
general  system  of  benefits  an  overlapping  and 
unwarranted  series  of  special  benefits  for 
veterans. 

I  again  urge  that  in  considering  new  or 
additional  aids  for  veterans  without  service 
disabilities,  the  Congress  judge  their  neces- 


sity not  merely  from  the  standpoint  of  mili- 
tary service,  but  also  on  the  basis  of  benefits 
under  the  general  social  security,  health,  and 
education  programs  available  to  all  the  peo- 
ple, including  veterans.  Our  objective 
should  be  to  make  our  social  security  system 
more  comprehensive  in  coverage  and  more 
adequate,  so  that  it  will  provide  the  basic 
protection  needed  by  all  citizens.  We  should 
provide  through  the  veterans'  programs  only 
for  the  special  and  unique  needs  of  veterans 
arising  direcdy  from  military  service. 

I  am  sure  that  our  veterans  are  willing  to 
share  with  other  citizens  in  the  benefits 
which  can  be  gained  for  all  through  a  posi- 
tive program  of  economic  and  social  advance- 
ment. They  recognize  that  their  best  inter- 
est is  inseparable  from  the  best  interest  of 
the  Nation.  For  a  democratic  Nation  like 
ours  can  thrive  only  as  all  its  citizens — veter- 
ans   and    nonveterans    alike — are    enabled 


Veterans'  Services  and  Benefits 
[  Fiscal  years.    In  millions  ] 

Expenditures 


1949 
actual 


Program  or  agency 
Readjustment  benefits  (Veterans  Administration) : 

Education  and  training $2,  697 

Unemployment  and  self-employment  allowances .  . 

Loan  guarantees 

Other    

Compensation  and  pensions  (Veterans  Administra- 
tion)   

Insurance   (Veterans  Administration) 

Hospitals,  other  services,  and  administrative  costs: 
Construction: 

Veterans   Administration 

Corps  of  Engineers  (Army) 

General  Services  Administration 

Current  expenses: 

Veterans  Administration: 

Hospital  and  medical  care 595 

Other  activities 345 

All  other  agencies 2 


510 
40 
87 

2,154 
95 


34 
108 

3 


1950 
estimated 


«)2,7i» 

153 

61 

105 

2,243 
518 


82 
141 

2 


584 

296 

2 


1951 
estimated 


l>2,  4»i 
61 
68 
78 

2,237 
39 


157 
97 


590 
269 

2 


"New  obligational 
authority  for  1951 
Appropria- 
tions 


Other 


$2,  681 


.237 
39 


C) 


607 
281 


Total 6, 669  6, 905  6, 080  ^  5,  847         

^This  Budget  also  includes  160  million  dollars  of  appropriations  to  liquidate  prior  year  contract  author- 
izations for  hospital  construction. 


68 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


through  fair  and  equal  opportunities  to  live 
as  self-respecting,  self-reliant  men  and 
women  in  a  free  and  prosperous  country. 

Readjustment  benefits. — By  the  end  of  the 
fiscal  year  195 1  it  is  estimated  that  under  the 
Servicemen's  Readjustment  Act  8,000,000 
veterans  will  have  received  education  and 
training  benefits  at  a  cost  of  12.9  biUion 
dollars,  and  that  9,000,000  will  have  drawn 
unemployment  and  self-employment  allow- 
ances totaling  3.9  billion  dollars.  In  addi- 
tion 2,400,000  veterans  will  have  obtained 
13  billion  dollars  in  loans  for  homes,  farms, 
and  businesses  under  the  Government  loan 
guarantee  program  for  veterans. 

The  average  enrollment  in  school,  job,  and 
farm  training  courses  under  the  education 
and  training  provisions  of  the  Servicemen's 
Readjustment  Act  is  expected  to  decline  from 
1,986,000  in  the  current  year  to  1,837,000  in 
195 1  and  to  require  expenditures  of  2.5 
billion  dollars. 

The  education  and  training  program,  how- 
ever, is  now  considerably  bigger  than  had 
been  expected.  The  average  number  of 
participants  in  1950  is  estimated  at  400,000 
above  the  level  anticipated  a  year  ago. 
Largely  because  of  this  unexpected  increase 
I  shall  soon  transmit  to  the  Congress  a  sup- 
plemental appropriation  estimate  of  about 
700  million  dollars  to  cover  the  higher  ex- 
penditures now  estimated  for  the  current 
fiscal  year.  The  bulk  of  the  increase  is  in 
schools  below  the  college  level,  particularly 
in  trade  and  vocational  schools.  While  en- 
rollment in  other  courses  is  decreasing, 
enrollment  in  these  courses  is  still  increasing 
and  in  1 95 1  is  estimated  to  average  936,000 — 
41  percent  higher  than  in  1949  and  14  per- 
cent higher  than  estimated  for  the  current 
fiscal  year. 

The  continued  expansion  of  enrollment  in 
schools  below  college  level,  more  than  4  years 
after  most  veterans  have  been  returned  to 


civilian  life,  raises  the  question  whether  this 
program  still  conforms  to  the  original  sound 
objectives  of  the  Servicemen's  Readjustment 
Act — ^to  enable  veterans  to  resume  education 
or  training  interrupted  by  the  war  or  to 
restore  skills  lost  during  military  service. 
There  is  some  question  whether  large  num- 
bers of  veterans  enrolled  in  these  schools  are 
in  fact  being  trained  for  occupations  for 
which  they  are  suited  and  in  which  they  will 
be  able  to  find  jobs  when  they  finish  their 
training.  I  have  asked  the  Administrator 
of  Veterans'  Affairs  and  the  Director  of  the 
Bureau  of  the  Budget  to  study  this  situation 
thoroughly  and  to  recommend  to  me  any 
corrective  measures,  administrative  or  legis- 
lative, which  should  be  taken  to  assure  that 
our  expenditures  for  this  program  yield  a 
proper  return  both  to  the  veterans  and  to  the 
Nation  as  a  whole. 

Since  July  1949,  under  the  terms  of  the 
"GI  bill",  veterans  discharged  from  service 
remain  eligible  for  unemployment  and  self- 
employment  allowances  for  only  2  years 
after  date  of  discharge.  On  the  average 
59,000  claimants  are  expected  to  draw  allow- 
ances, estimated  at  61  million  dollars,  in  the 
fiscal  year  195 1.  This  compares  with  an 
average  of  1,400,000  veterans  receiving  al- 
lowances in  the  peak  year  of  this  program, 
fiscal  year  1947. 

Under  the  Government  loan  guarantee 
program,  it  is  expected  that  386,000  veterans 
will  obtain  loans,  almost  all  for  homes, 
amounting  to  over  2  billion  dollars  in  the 
fiscal  year  1951.  The  estimated  oudays  of 
68  million  dollars  for  this  program  are  chiefly 
for  the  payment  of  the  first  year's  interest  on 
the  guaranteed  portion  of  the  loans.  Ex- 
penditures for  losses  on  defaulted  loans  are 
now  relatively  small,  although  the  contin- 
gent liability  is  sizable  since  the  amount  of 
the  Government  guarantees  is  now  about  48 
percent  of  the  total  loans.    In  addition  to 


69 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


guaranteeing  veterans'  loans,  the  Govern- 
ment also  purchases  guaranteed  mortgages 
held  by  financing  institutions.  (Mortgage 
purchases  are  classified  under  housing  and 
community  development.) 

The  "other"  expenditures  for  readjust- 
ment benefits  cover  allov^ances  for  burial 
expenses  of  veterans,  tuition  and  supplies  for 
disabled  veteran  trainees,  and  Government 
grants  for  special  housing  for  certain  se- 
riously disabled  veterans. 

Compensation  and  pensions, — It  is  esti- 
mated that  an  average  of  3,058,000  individ- 
uals and  families  will  receive  compensation 
and  pension  payments  totaling  more  than 
2.2  billion  dollars  in  the  fiscal  year  1951. 
Beginning  in  1951  disability  retirement  pay- 
ments of  78  million  dollars  to  31,000  Reserve 
officers,  shov^^n  in  this  item  in  prior  years, 
have  been  transferred  to  the  military  retired 
pay  account  of  the  Department  of  Defense. 
Apart  from  this  reclassification  to  national 
defense,  there  is  an  estimated  net  increase 
in  1 95 1  of  99,000  in  the  average  number  of 
cases,  and  of  71  million  dollars  in  expendi- 
tures over  the  current  year,  entirely  for  cases 
v^ithout  service  disabilities. 

The  1 95 1  expenditure  estimate  of  2.2  bil- 
lion dollars  includes  1.5  billion  dollars  in 
compensation  for  service-connected  cases, 
covering  an  average  of  344,000  families  of 
deceased  veterans  and  1,981,000  veterans 
with  disabilities.  The  compensation  and 
pension  total  also  includes  160  million  dol- 
lars for  subsistence  allowances  to  service- 
disabled  veterans  in  the  vocational  education 
and  training  program.  Pension  payments  to 
an  average  of  732,000  non-service-connected 
cases  in  1951  are  estimated  to  total  553  mil- 
lion dollars,  about  two-thirds  to  living  vet- 
erans and  one-third  to  survivors  of  deceased 
veterans. 

Insurance. — ^The  Government  reimburses 
the  veterans'  life  insurance  trust  funds  for 


payments  on  account  of  deaths  traceable  to 
war  hazards,  and  also  pays  directly  certain 
claims  to  veterans  who  failed  to  meet  the 
regular  standards  of  insurability.  The  ex- 
penditures in  the  fiscal  year  1950  include 
nonrecurring  transfers  of  413  million  dollars 
to  the  national  service  life  insurance  fund 
arising  from  a  resurvey  of  the  Government's 
liability  for  such  contributions.  Expendi- 
tures in  195 1  for  insurance  claims  payable  by 
the  Government  are  estimated  at  39  million 
dollars. 

Hospital  and  domiciliary  construction, — 
Construction  of  hospitals  to  provide  37,000 
new  beds  and  additional  domiciliary  facili- 
ties, costing  872  million  dollars,  is  now  about 
one-third  completed.  By  June  1951  it  is 
estimated  that  three-fourths  of  the  work  will 
have  been  done.  When  this  program  is  fin- 
ished, there  will  be  sufficient  beds  to  provide 
adequately  for  foreseeable  needs  for  all 
service-connected  cases  and  a  more  liberal 
allowance  of  beds  than  at  present  for  non- 
service-connected  cases.  Obligational  au- 
thority already  available  is  more  than  ade- 
quate to  meet  the  needs  of  the  program  now 
under  way. 

Hospital  and  other  services  and  adminis- 
tration.— Current  expenses  for  hospital  and 
medical  care  are  estimated  at  590  million  dol- 
lars in  the  fiscal  year  195 1.  About  four- 
fifths  of  these  expenditures  are  for  the  in- 
patient care  program,  and  in  this  program 
two-thirds  of  the  cases  currently  are  non- 
service-connected.  A  daily  average  of 
138,000  patients  in  hospitals  and  homes  is 
estimated  for  195 1,  about  9,000  more  than 
were  cared  for  in  1949  and  4,000  more  than 
in  the  current  year.  The  other  one-fifth  of 
the  expenditures  is  largely  for  the  outpatient 
medical  and  dental  care  programs. 

Other  current  expenses,  which  are  chiefly 
the  costs  of  administering  and  operating  the 
nonmedical  benefits  programs  and  of  general 


70 


Harry  S.  Truman,  igp 

Veterans'  Life  Insurance  Funds 

{Trust  accounts) 

[  Fiscal  years.    In  millions  ] 

Item 
Receipts: 

Transfers  from  general  and  special  accounts 

Interest  on  investments 

Premiums  and  other 

Total 

Expenditures: 

Dividends  to  policyholders 

Benefits  and  other 

Total 

Net  accumulation 


administration  of  the  Veterans  Administra- 
tion, are  estimated  to  decline  in  1951  to  269 
million  dollars. 

Trust  accounts, — ^The  national  service  life 
insurance  and  Government  life  insurance 
trust  funds  operate  as  mutual  insurance  sys- 
tems on  a  commercial  pattern,  except  that 
no  administrative  expenses  are  paid  by  them 
and  the  amounts  held  in  reserve  and  as  sur- 
plus are  invested  in  Government  obligations 
by  the  Secretary  of  the  Treasury.  Veterans 
of  World  Wars  I  and  II  and  present  service- 
men now^  hold  about  6,800,000  active  policies 
in  these  two  systems.  Premiums  and  earn- 
ings, supplemented  by  Government  pay- 
ments of  over  4  billion  dollars  for  claims  in- 
volving deaths  and  disabilities  resulting  from 
extra  hazards  of  military  service,  have  built 
up  assets  in  these  two  funds  to  an  estimated 
9.7  billion  dollars  at  the  present  time. 

The  Government  life  insurance  fund  has 
been  on  a  dividend-paying  basis  since  1921. 
A  special  dividend  of  40  million  dollars  was 
paid  early  in  the  fiscal  year  1950.  The  first 
national  service  life  insurance  dividend, 
amounting  to  an  estimated  2.8  billion  dollars 
and  payable  to  all  servicemen  of  World  War 
II  who  hold  or  have  held  policies,  has  been 
declared.    Payments  are  now  scheduled  to 


1949 
actual 


255 
431 

775 

II 

382 

393 

382 


Jan.  9    [9] 


1950         1951 

estimated      estimated 


$487 
261 
446 

1,194 

2,303 
427 

2,730 

—1,536 


$33 
210 
465 

708 

563 
436 

999 
-291 


begin  shortly.  It  is  estimated  that  2.2  billion 
dollars  will  be  disbursed  in  the  current  fiscal 
year  and  the  balance  in  1951  or  later,  as 
applications  are  filed.  In  the  next  few  years 
a  regular  dividend  schedule  is  to  be  estab- 
lished for  national  service  life  insurance. 
These  dividends  are  not  a  Budget  expendi- 
ture since  they  are  paid  from  the  trust  funds. 

Social  Welfare,  Health,  and  Security 

The  coming  year  will  be  an  extremely 
significant  one  for  the  Nation's  social  secu- 
rity program.  The  decisions  of  the  Con- 
gress on  pending  legislation  will  determine 
the  direction  which  this  country  will  follow 
in  providing  basic  protection  against  the 
major  economic  hazards  of  old  age,  unem- 
ployment, illness,  and  disability.  It  is  my 
strong  belief  that  it  is  a  responsibility  of  the 
Government  to  provide  this  protection,  and 
to  provide  it  in  a  manner  that  is  consistent 
with  our  ideals  of  independence  and  self- 
reliance — ^through  the  already  established 
and  tested  principle  of  contributory  social 
insurance.  This  was  the  basic  philosophy 
of  the  Social  Security  Act,  in  which  the 
major  role  was  given  to  social  insurance, 
financed  mutually  by  employers  and  em- 


71 


[p]    Jan.  9 


Public  Papers  of  the  Presidents 


ployees,  with  benefits  available  as  a  matter  of 
right  without  a  means  test.  Public  assist- 
ance was  given  only  a  supplementary  role 
to  fill  in  the  diminishing  gaps  in  insurance 
protection. 

The  effects  of  our  failure  in  recent  years 
to  carry  out  this  philosophy  are  already 
dramatized  by  the  increase  in  the  public 
assistance  rolls.  Because  the  protection  of 
social  insurance  is  so  limited  and  inadequate, 
far  too  many  people  have  been  forced  to 
seek  public  relief.  In  some  States,  for  ex- 
ample, half  the  aged  people  are  on  the  relief 
rolls.  Approximately  2,700,000  aged  people 
and  1,500,000  dependent  children  now  re- 
ceive public  assistance.  By  contrast,  only 
1,900,000  aged  persons  receive  insurance 
benefits  and  800,000  children  and  their 
mothers  receive  survivors  benefits  under  the 
old-age  and  survivors  insurance  system. 
Average  old-age  insurance  benefits  are  only 
26  dollars  a  month  compared  with  average 
old-age  public  assistance  benefits  of  45 
dollars. 

Public  demand  for  some  form  of  basic 
financial  protection  against  loss  of  earning 
power  is  evident  in  the  keen  interest  of  wage 
earners  in  industrial  pension  and  insurance 
plans.  There  can  be  no  question  that  our 
society  can  and  should  provide  such  protec- 
tion. What  I  wish  to  emphasize  is  that  the 
basic  approach  should  be  through  a  compre- 
hensive public  program  of  old-age,  survivors, 
and  disability  insurance,  rather  than  through 
a  multiplicity  of  unrelated  private  plans, 
which  would  inevitably  omit  large  numbers 
of  the  working  population  and  treat  others 
unequally.  Private  plans  and  voluntary  in- 
surance can  then  provide  desirable  supple- 
mental protection. 

I  urge  that  the  Congress  enact  legislation 
to  expand  and  improve  the  old-age  and  sur- 
vivors insurance  system  in  accordance  with 
the  recommendations  made  last  spring. 
Specifically,  nearly  all  gainfully  employed 


people,  including  farmers  and  the  self-em- 
ployed, should  be  covered;  benefits  should 
be  increased  sharply;  and  disability  should 
be  added  to  the  risks  covered.  It  is  also 
important  that  the  tax  base  be  raised  to  the 
first  4,800  dollars  of  earned  income,  not  only 
to  reflect  changes  in  wage  levels  since  1939, 
but  also  to  bring  both  receipts  and  benefits 
to  proper  levels. 

The  recommended  program  will  cover 
about  85  percent  of  all  employed  people,  and 
will  thus  gradually  reduce  the  need  for  pub- 
lic assistance.  In  the  meantime,  however, 
it  is  necessary  to  provide  some  help  for  those 
persons  not  yet  protected  by  social  insurance, 
as  well  as  for  those  who  would  need  public 
aid  even  with  an  adequate  social  insurance 
system.  I  therefore  renew  my  recommen- 
dation of  last  year  that  the  program  of  Fed- 
eral grants  to  States  for  public  assistance  be 
extended  and  improved.  The  proposal  that 
I  submitted  to  the  Congress  last  spring  was 
designed  to  permit  Federal  sharing  in  the 
cost  of  aid  to  needy  persons  excluded  from 
the  present  program,  as  well  as  in  the  cost 
of  essential  medical  and  welfare  services. 
It  was  also  designed  to  make  Federal  grants 
more  responsive  to  the  financial  resources  of 
each  State.  Within  the  framework  of  gen- 
eral policy  under  the  Social  Security  Act,  the 
States  are  responsible  for  determining  the 
size  of  benefit  payments  and  the  eligibility 
of  individuals  for  assistance.  In  adopting 
amendments  to  the  present  program,  we 
should  continue  to  rely  on  the  States  to  bear 
a  considerable  share  of  the  financial  responsi- 
bility. 

In  the  field  of  health,  I  presented  a  set  of 
recommendations  to  the  Congress  on  April 
22,  1949,  oudining  in  some  detail  a  program 
for  the  Nation,  centering  in  a  national  sys- 
tem of  medical-care  insurance.  Since  that 
time,  the  extension  and  enlargement  of  the 
hospital  construction  program  which  I  rec- 
ommended has  been  enacted,  and  consider- 


72 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


able  headway  has  been  made  on  some  of  my 
other  recommendations.  I  hope  that  the 
Congress  will  soon  complete  action  on  leg- 
islation to  increase  Federal  assistance  to  local 
health  services.  Strengthening  of  these  is 
fundamental  to  our  national  health.  In 
addition,  legislation  should  be  enacted  to 
provide  financial  aid  to  medical  and  related 
schools  to  encourage  the  training  of  addi- 
tional medical  personnel.  In  the  case  of 
nurses,  tuition  scholarships  and  subsistence 
aids  should  be  made  available  for  training 
graduate  nurses,  and  grants  should  be  made 
to  States  for  vocational  education  for  prac- 
tical nurses,  to  encourage  more  young 
women  to  enter  the  profession. 

To  fill  in  a  major  gap  in  our  social  security 
system,  I  again  strongly  urge  the  adoption 
of  legislation  providing  for  a  comprehensive 
system  of  prepaid  medical  care  insurance. 
This  should  be  geared  in  with  our  other 
social  insurance  programs  and  financed  pre- 
dominandy  by  employer  and  employee 
contributions. 

Action  on  these  measures  should  no  longer 
be  delayed.  We  cannot  in  good  conscience 
let  our  social  security  system  remain  in  the 
blueprint  stage,  and  allow  relief  programs  to 
become  our  primary  defense  against  want. 

This  Budget  contains  estimates  for  all  of 
my  proposals.  The  greater  part  of  them 
would  be  financed  through  special  taxes, 
with  receipts  going  into  Government  trust 
funds  and  payments  being  made  directiy 
from  the  funds.  Social  insurance  benefits, 
by  providing  support  for  the  aged  and  disa- 
bled and  their  dependents,  help  to  relieve 
individual  families,  employers,  and  commu- 
nities of  this  burden.  At  the  same  time,  by 
replacing  the  present  haphazard  arrange- 
ments with  a  comprehensive  pattern  of  social 
insurance,  we  promote  the  stability  of  the 
economy  and  preserve  the  self-respect  of  all 
our  citizens. 

My  proposals  will  add  an  estimated  271 


million  dollars  to  Budget  expenditures  in 
1 95 1,  principally  in  the  form  of  grants  to 
States.  Of  this  amount,  200  million  dollars 
is  for  improvement  of  public  assistance  and 
67  million  dollars  for  health  programs. 
These  items,  plus  increases  under  existing 
legislation  in  these  two  fields,  are  expected 
to  cause  Budget  expenditures  for  social  wel- 
fare, health,  and  security  to  rise  in  the  fiscal 
year  195 1  to  a  level  of  2.7  billion  dollars,  an 
increase  of  417  million  dollars  over  the  cur- 
rent year.  Aside  from  proposed  legislation, 
the  primary  cause  of  the  increase  is  a  rise  in 
grants  to  States  for  public  assistance  and 
hospital  construction.  Included  in  the  total 
is  594  million  dollars  representing  the  trans- 
fer of  pay-roll  tax  receipts  to  the  railroad 
retirement  trust  fund. 

I  recommend  again  that  the  Federal  Secu- 
rity Agency  be  given  departmental  status; 
its  functions  are  so  important  to  the  domestic 
policies  of  the  Government  that  the  head  of 
this  Agency  should  be  a  member  of  the 
President's  Cabinet. 

Assistance  to  the  aged  and  other  special 
groups, — Grants-in-aid  to  States  for  public 
assistance  to  the  needy  aged,  the  blind,  and 
dependent  children  are  expected  to  reach  1.2 
billion  dollars  in  195 1  under  the  present  pro- 
gram, with  the  Federal  share  averaging 
about  52  percent  of  total  payments  by  State 
and  local  governments  to  these  groups.  For 
some  time,  the  number  of  recipients  has  been 
increasing  and  now  exceeds  4,000,000  per- 
sons; it  is  expected  to  average  4,600,000  dur- 
ing 195 1.  Average  benefits  are  also  expected 
to  continue  their  rise.  As  a  result.  Federal 
expenditures  will  exceed  those  for  the  current 
year  by  an  estimated  55  million  dollars.  The 
Budget  contains  an  additional  200  million 
dollars  as  the  first-year  expenditure  estimated 
for  proposed  legislation  to  cover  all  the  needy 
and  to  put  the  program  on  a  variable  grant 
basis.  The  revised  formula  which  I  have 
recommended  would  relate  grants  to  the 


73 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


Social  Welfare,  Health,  and  Security 
[  Fiscal  years.    In  millions  ] 


Expenditures 

1949  1950  1951 

actual      estimated     estimated 


"New  obligational 
authority  for  1951 
Appropria- 
tions Other 


$922        $1, 146 


15 


26 


4 
75 

579 
5 


161 


2 

83 

603 
10 


259 


8)1,  201 
250 

24 

4 

2 


594 

7 


Program  or  agency 
Assistance  to  the  aged  and  other  special  groups: 
Federal  Security  Agency: 
Public  assistance: 

Present  programs 

Proposed  legislation 

Vocational  rehabilitation: 

Present  programs 

Proposed  legislation 

Other 

School  lunch  (Department  of  Agriculture) 

Retirement  and  dependents'  insurance: 

Railroad  Retirement  Board 

Federal  Security  Agency  and  other 

Promotion  of  public  health: 
Federal  Security  Agency: 

Present  programs 

Proposed  legislation: 

Aid  to  medical  education 

Local  health  services 

Children's  Bureau  grants 

School  health  services 

General  Services  Administration  and  other 

Crime  control  and  correction  (Department  of  Justice 

and  other) 

Indian  welfare  (Interior)  and  other 

Accident  compensation  (Federal  Security  Agency)  . . 

Total 1, 907  2, 297  2, 714         ^  2, 625  165 

^This  Budget  also  includes  151  million  dollars  of  appropriations  to  liquidate  prior  year  contract  author- 
izations. 


$1,201 
200 

24 

4 

2 

83 

594 
7 


334 


190 


$163 


30 

45 

5 

5 

7 

10 

25 

35 

10 

21 

32 

6 

88 

93 

99 

lOI 

I 

32 

29 

39 

39 

I 

15 

25 

28 

28 

financial  resources  of  the  individual  States 
and  would  also  permit  the  Federal  share  to 
be  held  within  reasonable  limits. 

I  am  also  proposing  legislation  to 
strengthen  the  Federal-State  program  of  vo- 
cational rehabilitation  and  to  provide  addi- 
tional opportunities  for  rehabilitation  of  the 
more  severely  handicapped.  By  enabling 
these  people  to  become  productive  workers, 
instead  of  liabilities  to  their  families  and 
communities,  we  are  enhancing  our  national 
supply  of  skills  and  productive  ability.  The 
Budget  includes  4  million  dollars  for  the  first 


year  under  the  proposed  legislation. 

Railroad  retirement  insurance.  —  The 
amount  of  594  million  dollars  included  as  an 
expenditure  in  the  Budget  is  actually  the 
transfer  of  special  tax  receipts  to  a  trust  ac- 
count for  payment  of  benefits  to  retired  rail- 
road workers  and  their  survivors.  Apart 
from  credits  for  military  service,  the  program 
is  financed  by  taxes  on  railroad  wages,  shared 
equally  by  employees  and  employers.  Under 
present  law,  the  transfers  of  tax  receipts  to 
the  fund  must  be  made  in  advance  of  col- 
lection and  thus  interest  begins  to  accrue 


74 


Harry  S.  Truman,  i^p 


Jan.  9    [9] 


to  the  fund  before  the  taxes  are  collected.  To 
avoid  this  payment  of  interest  on  money  not 
yet  received,  the  Congress  should  direct  that 
these  taxes  be  transferred  to  the  trust  fimd 
when  received,  as  is  now  done  with  the  old- 
age  and  survivors  insurance  taxes. 

I  recommend  also  that  the  Congress  revise 
the  procedure  for  making  Federal  Govern- 
ment payments  for  military  service  credits 
allowed  to  railroad  employees.  Such  pay- 
ments to  the  railroad  retirement  trust  fund 
should  be  made  annually  in  the  years  ahead 
on  the  basis  of  claims  actually  approved  as 
workers  retire.  As  the  law  now  stands, 
these  payments  are  made  in  advance,  with- 
out adequate  relationship  to  eventual  re- 
quirements for  actual  benefits.  To  cover 
such  future  claims,  193  million  dollars  has 
already  been  advanced  to  the  trust  fund. 
Unless  the  law  is  amended  as  recommended 
in  this  Budget,  further  payments  of  approxi- 
mately 33  million  dollars  will  be  required 
in  each  of  the  next  four  fiscal  years. 

Promotion  of  public  health, — ^Federal  ex- 
penditures for  public  health  are  mainly  for 
grants-in-aid  to  States  and  for  research.  Of 
the  334  million  dollars  estimated  for  existing 
programs  in  the  fiscal  year  1951,  213  million 
dollars  is  for  financial  assistance  to  the  States 
for  general  public  health  services  and  for  a 
wide  variety  of  special  State  and  local  pro- 
grams, including  hospital  construction, 
maternal  and  child  health,  tuberculosis  con- 
trol, and  mental  health.  The  increase  of  75 
million  dollars  in  expenditures  over  1950  for 
existing  programs  is  caused  largely  by  a  rise 
in  grants  to  liquidate  prior  years'  hospital 
construction  authorizations.  This  program 
is  helping  communities  throughout  the  Na- 
tion to  reduce  the  hospital  shortage. 

Because  adequate  general  public  health 
services  are  basic  in  our  health  program,  I 
am  recommending  that  grants  for  this  pur- 
pose be  increased  by  9  million  dollars,  bring- 


ing them  up  to  23  million  dollars,  the  max- 
imum authorized  under  existing  law.  An 
additional  5  million  dollars  is  included  for 
proposed  legislation  to  increase  these  grants 
beyond  the  existing  ceiling.  At  the  present 
time,  most  of  the  counties  of  this  Nation 
lack,  either  wholly  or  in  part,  the  basic  local 
public  health  services  which  must  form  the 
foundation  for  our  efforts  to  improve  the 
Nation's  health.  The  increase  permitted  by 
existing  law  will  provide  only  a  start  toward 
meeting  this  serious  deficiency.  New  leg- 
islation is,  therefore,  needed  to  remove  the 
existing  statutory  ceiling  and  provide  a 
sound  basis  for  aiding  States  in  the  future 
development  of  adequate  local  health 
services. 

Other  proposed  legislation  is  expected  to 
add  62  million  dollars  to  expenditures,  of 
which  30  million  dollars  is  for  aid  to  med- 
ical education  to  increase  enrollments  in 
schools  of  medicine,  nursing,  dentistry,  and 
public  health,  and  7  million  dollars  is  for 
expansion  of  health  and  welfare  services  to 
mothers  and  children.  Expenditures  under 
pending  legislation  authorizing  special 
health  services  to  school  children  are  esti- 
mated at  25  million  dollars. 

The  direct  research  activities  of  the  Public 
Health  Service  and  the  grants  to  individuals 
and  institutions  for  research,  teaching,  and 
training,  will  require  an  estimated  47  million 
dollars  in  195 1,  a  moderate  increase  over 
1950.  No  provision  is  made  in  this  Budget 
for  further  expansion  of  Public  Health  Serv- 
ice grants  to  medical  schools  for  under- 
graduate teaching  and  for  construction  of 
additional  research  facilities  on  the  basis  of 
special  disease  categories.  This  anticipates 
early  enactment  of  legislation  for  general  aid 
to  medical  education,  which  would  contain 
adequate  provisions  for  aid  to  medical  schools 
in  meeting  their  costs  of  teaching  and  in 
constructing  additional  facilities.    Such  legis- 


75 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


lation  would  permit  an  integrated  program 
of  research  and  teaching  at  medical  schools, 
which  should  be  far  more  conducive  to  good 
results  than  separate  financing  for  each 
major  type  of  disease. 

Trust  accounts, — Under  the  old-age  and 
survivors  insurance,  railroad  retirement,  and 
Federal  employee  retirement  programs, 
benefit  disbursements  are  made  from  the 
trust  funds  and  are  not  included  in  Budget 
expenditures.  On  the  receipts  side,  the  pay- 
roll contributions  for  old-age  and  survivors 
insurance  are  transferred  directly  to  the  trust 


fund  and  not  included  in  total  Budget  re- 
ceipts. Receipts  and  payments  under  the 
proposed  health  insurance  program  would 
also  be  handled  in  this  manner.  Railroad 
retirement  taxes,  on  the  other  hand,  are 
included  in  total  Budget  receipts  and  are 
transferred  to  the  trust  account  as  a  Budget 
expenditure.  The  Government  contribution 
to  its  employee  retirement  funds  is,  of  course, 
a  Budget  expenditure  (classified  under  gen- 
eral government). 

The  money  in  these  trust  funds  is  invested 
in  Government  securities,  and  the  interest 


Social  Welfare,  Health,  and  Security 
{Major  trust  accounts) 

[  Fiscal  years.    In  millions  ] 

Fund  and  item  actual 

Federal  old-age  and  survivors  insurance  trust  fund: 
Receipts: 

Appropriation  from  general  receipts |i,  690 

Interest  and  other 233 

Proposed  legislation  extending  coverage,  raising  tax  base,  and 

adding  disability  benefits 

Payments  of  benefits  and  administrative  expenses: 

Present  programs — 660 

Proposed  legislation 

Net  accumulation  (including  proposed  legislation) i,  263 

Railroad  retirement  account:  ==: 
Receipts: 

Transfers  from  Budget  accounts 574 

Interest  on  investments 51 

Payments  of  benefits,  salaries,  and  expenses — 278 

Net  accumulation 347 

Federal  employees'  retirement  funds:  = 
Receipts: 

Employee  contributions 328 

Transfers  from  Budget  accounts  and  other 230 

Interest 124 

Payments  of  annuities  and  refunds,  and  expenses —221 

Net  accumulation 460 

Medical  care  insurance  trust  fund  (proposed  legislation):  == 

Receipts  from  pay-roll  contributions 

Payment  for  initial  expenses 

Net  accumulation 

76 


1950 

estimated 

1951 
estimated 

$2,  245 
261 

$2,515 
303 

I,  200 

-783 

-867 

~-i»433 

1,723 

1,718 

602 

61 

—314 

594 

64 

—346 

349 

312 

374 

353 

306 

140 

—255 

337 

163 

-276 

566 

578 

250 

—35 

215 

Harry  S.  Truman,  i^p 


Jan.  9    [9] 


earned  is  added  to  the  principal  of  each  trust 
fund.  Accumulated  assets  now  total  18 
billion  dollars. 

Under  present  law,  the  old-age  and  sur- 
vivors insurance  tax  rate  advanced  on  Janu- 
ary 1, 1950,  to  1 54  percent  each  for  employers 
and  employees.  In  view  of  the  recom- 
mended increase  in  benefits  and  addition  of 
disability  coverage,  I  propose  that  the  further 
tax  increase  to  2  percent  each,  presently 
scheduled  for  January  i,  1952,  be  moved  up 
to  January  i,  1951,  The  proposed  legisla- 
tion would  raise  benefits  in  the  fiscal  year 
195 1  from  about  800  million  dollars  under 
existing  law  to  approximately  2.2  billion 
dollars.  Thereafter  disbursements  for  bene- 
fits can  be  expected  to  climb  gradually  as 
claims  mature.  The  4  percent  combined 
tax  should  produce  revenues  of  approx- 
imately 5  billion  dollars  a  year  with  employ- 
ment at  a  high  level,  so  that  for  the  next 
several  years  reserves  would  continue  to 
accumulate. 

A  period  of  preparation  will  be  required 
to  set  up  the  health  insurance  system.  I  am 
proposing  that  in  the  meantime  a  small 
pay-roll  tax  of  one-fourth  of  i  percent  each 
on  employers  and  employees  become  effec- 
tive January  i,  195 1,  to  defray  initial  ex- 
penses. Setting  up  this  tax  will  also  make 
possible  the  establishment  of  eligibility  and 
other  administrative  records. 

Housing   and   Community   Development 

Last  year  the  Congress  adopted  as  the 
declared  objective  of  national  housing  policy 
"a  decent  home  and  suitable  living  environ- 
ment for  every  American  family."  Real 
progress  has  been  made  toward  achieving 
this  goal.  Private  enterprise,  with  extensive 
Government  assistance,  built  a  million  new 
houses  last  year,  more  than  ever  before,  and 
at  generally  reduced  prices.  Far-sighted 
new  legislation  was  enacted,  which  gives 


practical  support  to  private  and  local  initia- 
tive in  clearing  slums  and  developing  our 
cities,  in  providing  special  assistance  for  low- 
income  families  in  cities  and  on  farms,  and 
in  promoting  better  methods  and  lower  costs 
for  all  types  of  housing  construction. 

Our  task  this  year  is  twofold.  We  must 
continue  to  push  ahead  rapidly  in  carrying 
out  these  major  new  programs.  We  must 
also  further  improve  Federal  housing  legis- 
lation. In  particular,  to  close  the  biggest 
remaining  gap,  I  am  recommending  legisla- 
tion which  will  aid  middle-income  groups  to 
obtain  adequate  housing  they  can  afford. 

Budget  expenditures  for  housing  and  com- 
munity development  are  estimated  at  1.3 
billion  dollars  in  195 1.  Of  this  total,  almost 
I  billion  dollars,  or  about  75  percent,  repre- 
sents the  current  estimate  of  expenditures  for 
mortgage  purchases  by  the  Reconstruction 
Finance  Corporation  to  support  the  private 
mortgage  market.  The  Corporation  will 
subsequently  be  reimbursed  for  its  expendi- 
tures in  buying  these  mortgages,  either 
through  collections  or  through  sale  to  private 
institutions. 

Most  of  the  Federal  expenditures  for  hous- 
ing and  community  development,  including 
mortgage  purchases,  are  financed  by  public 
debt  authorizations  rather  than  by  appro- 
priations. The  public  housing  and  urban 
redevelopment  programs  will  require  rela- 
tively small  appropriations  in  the  early  years, 
with  substantial  increases  in  later  years.  The 
Federal  Housing  Administration  insures 
each  year  about  3  billion  dollars  in  private 
home  mortgages,  but  since  this  is  an  insur- 
ance operation  it  has  only  a  minor  effect  on 
current  Budget  expenditures. 

Federal  Housing  Administration, — ^Al- 
most half  the  record  volume  of  private  new 
housing  now  under  construction  is  being 
financed  with  mortgages  insured  or  guaran- 
teed by  the  Federal  Government,  largely  by 
the  Federal  Housing  Administration,  and 


77 


b]    Jan.  9 


Public  Papers  of  the  Presidents 

Housing  and  Community  Development 
[  Fiscal  years.    In  millions  ] 


Expenditures 


"New  obligational 
authority  for  1 9S I 


Program  or  agency 
Aids  to  private  housing: 

Housing  and  Home  Finance  Agency: 

Federal  Housing  Administration  (present  pro- 
grams and  proposed  legislation): 

Current  operations 

Investments  in  United  States  securities 

Home  Loan  Bank  Board:  * 

Home  Owners'  Loan  Corporation 

Federal  Savings  and  Loan  Insurance  Corpora- 
tion: 

Current  operations 

Investments  in  United  States  securities .... 
Loans  to  middle-income  cooperatives  (proposed 

legislation) 

Reconstruction  Finance  Corporation: 

Mortgage  purchases 

Loans  to  prefabricators  and  builders,  and  other. 
Loans  to  housing  cooperatives  (proposed  legis- 
lation)   

Department  of  Agriculture 

Public  housing  program: 
Housing  and  Home  Finance  Agency: 
Public  Housing  Administration: 

Low-rent  housing 

War  housing  and  other 

Reconstruction  Finance  Corporation  and  other .... 
General  housing  aids:  Housing  and  Home  Finance 

Agency 

Slum  clearance  and  community  development   (in- 
cluding community  facilities): 

Housing  and  Home  Finance  Agency 

Reconstruction  Finance  Corporation 

General  Services  Administration  and  other 

Disaster  relief   (proposed  legislation) 

Total 


79^9  igso  1951       Approprta- 

actual      estimated     estimated        tions 


Other 


-$33 
30 

—  119  — 


-15 
15 


407 
25 


-II 
53 


-83 


282 


42 
198 


—  16 
17 


940 
52 

10 

20 


99 

19 

—  I 


II 

18 
20 


-$30 
31 

—  134 


18 
50 

990 

45 

30 

45 


136 

—3 
—  I 


58 

48 

50 

5 


S35 


$25 
250 


50 


41 


30 
5 


325 
54 


1,006  1*329  ^117  704 

*  Stand-by  borrowing  authority  of  1,750  million  dollars  is  recommended  to  become  available  in  1950. 
'This  Budget  also  includes  18  million  dollars  of  appropriations  to  liquidate  prior  year  contract  author- 
izations. 


also  by  the  Veterans  Administration  (classi- 
fied under  veterans'  services  and  benefits). 
By  removing  all  major  risks  from  mortgage 
lending,  these  insurance  and  guarantee  pro- 
grams make  is  possible  for  American  families 
to  buy  housing  on  substantially  better  terms 


78 


than  they  could  obtain  otherwise.  About 
350,000  other  families  now  live  in  rental 
housing  which  was  financed  by  Government- 
insured  mortgages.  In  the  case  of  both  sales 
and  rental  housing,  established  procedures 
of  the  Federal  Housing  Administration,  in- 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


eluding  inspections,  provide  assurance  that 
recognized  housing  standards  are  met. 

As  long  as  favorable  economic  conditions 
continue,  income  from  premiimis  and  other 
sources  v^ill  exceed  expenses  and  permit  sub- 
stantial investment  in  Government  securities 
to  build  up  reserves  against  possible  later 
losses. 

In  the  past  year  the  mortgage  insurance 
program  has  successfully  stimulated  con- 
struction of  rental  housing  and  lower-cost 
housing  for  sale.  I  have  already  recom- 
mended additional  legislation  to  encourage 
further  the  construction  of  lower-cost  hous- 
ing for  sale.  I  shall  shortly  transmit  recom- 
mendations to  provide,  on  a  permanent 
rather  than  an  emergency  basis,  a  more  ef- 
fective stimulus  to  lower  rental  housing. 
For  both  rental  and  sales  housing,  the  new 
proposals  would  also  provide  needed  incen- 
tives to  construction  of  units  of  adequate  size 
for  family  living. 

Reconstruction  Finance  Corporation, — 
Since  last  spring,  the  Federal  National  Mort- 
gage Association,  a  subsidiary  of  the  Recon- 
struction Finance  Corporation,  has  been 
making  heavy  purchases  of  mortgages  from 
private  lenders,  of  which  the  major  portion 
is  guaranteed  by  the  Veterans  Administra- 
tion. These  purchases  have  made  it  possible 
for  veterans  in  all  parts  of  the  country  to  buy 
houses  on  the  advantageous  terms  offered 
under  the  Servicemen's  Readjustment  Act. 
Substantial  commitments  to  purchase  mort- 
gages insured  by  the  Federal  Housing  Ad- 
ministration have  also  been  particularly  help- 
ful in  assuring  the  availability  of  adequate 
funds  for  rental  housing  construction. 

The  continuing  need  for  a  stand-by  sec- 
ondary market  does  not  mean  that  Govern- 
ment purchases  should  be  regarded  as  a 
permanent  substitute  for  private  financing. 
Accordingly,  the  administration  of  this  pro- 
gram will  be  directed  toward  encouraging 
private  lenders  to  hold  a  larger  portion  of 


these  mortgages  as  well  as  to  repur- 
chase the  mortgages  previously  sold  to  the 
Federal  Government.  Important  adminis- 
trative steps  are  being  taken  but  they  can  be 
only  gradually  effective,  and  substantial  fu- 
ture expenditures  will  be  necessary  to  carry 
through  on  the  large  volume  of  commitments 
already  outstanding.  Estimated  commit- 
ments will  exhaust  the  present  authorization 
of  2.5  billion  dollars  shordy  after  the  close 
of  the  current  fiscal  year.  Because  the  rate 
of  commitment  is  uncertain,  I  am  recom- 
mending an  additional  500  million  dollars 
in  public  debt  authorizations  in  fiscal  year 
1950  and  250  million  dollars  in  1951. 

Prospective  expenditures  for  mortgage 
purchases  cannot  be  estimated  accurately, 
since  their  amount  depends  largely  on 
whether  private  lenders  decide  to  hold  the 
mortgages  as  permanent  investments  or  to 
sell  them  to  the  Government.  For  example, 
the  initial  estimate  a  year  ago  of  200  million 
dollars  in  such  purchases  for  the  fiscal  year 
1950  was  later  revised  upward  to  1.3  billion 
dollars  and  is  now  reduced  to  940  million 
dollars. 

The  Reconstruction  Finance  Corporation 
also  has  special  authority  to  lend  up  to  50 
million  dollars  to  producers  of  prefabricated 
housing  and  large-scale  builders  using  ad- 
vanced construction  methods.  I  recom- 
mend that  the  Corporation  be  authorized  to 
lend  an  additional  25  million  dollars  for 
these  and  related  purposes.  The  accom- 
plishments of  this  program  to  date  have  been 
below  our  expectations,  but  the  potential 
benefits  from  the  development  of  new  hous- 
ing production  methods  are  so  great  that  I 
believe  a  further  limited  investment  of  Fed- 
eral funds,  building  upon  the  experience  al- 
ready gained,  will  yield  good  returns. 

Cooperative  housing  for  middle-income 
families, — Even  with  these  various  Federal 
aids,  enough  private  housing  of  the  right 
types  is  not  yet  being  produced  generally 


79 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


throughout  the  country  at  prices  which  fam- 
ilies with  modest  incomes  can  afford.  As  a 
necessary  supplement  to  our  other  housing 
programs,  I  am  recommending  new  leg- 
islation to  authorize  Federal  assistance  to 
cooperatives  and  nonprofit  corporations  in 
building  and  managing  housing  projects. 
Under  the  plan  I  am  proposing,  the  Federal 
Government  would  provide  technical  assist- 
ance in  organizing  housing  cooperatives  and 
adequate  arrangements  for  their  financing. 
Through  financial  and  other  savings,  mate- 
rial reductions  in  rents  or  charges  are 
anticipated. 

Because  of  the  limited  American  experi- 
ence with  housing  cooperatives,  this  pro- 
gram initially  must  be  viewed  as  experimen- 
tal, and  cannot  be  expected  to  attain  a  large 
volume  in  195 1.  With  proper  Federal  lead- 
ership and  assistance,  however,  it  offers  real 
promise  that  middle-income  families  will  be 
able  to  help  themselves  obtain  good  housing 
at  costs  within  their  means. 

Home  Loan  Ban\  Board, — This  Board 
supervises  the  operation  of  the  Home  Own- 
ers' Loan  Corporation,  the  Federal  home- 
loan  banks,  and  the  Federal  Savings  and 
Loan  Insurance  Corporation. 

The  Home  Owners'  Loan  Corporation  is 
rapidly  liquidating  the  remainder  of  its 
mortgages  by  selling  them  to  private  lenders. 
During  the  depression  years,  the  Corpora- 
tion made  more  than  3  billion  dollars  in 
loans,  thus  enabling  over  1,000,000  families 
to  keep  their  homes.  By  the  end  of  the  fiscal 
year  1951,  all  of  these  loans  will  be  repaid 
or  sold. 

Savings  and  loan  associations  supervised 
by  the  Federal  home-loan  banks  provide 
roughly  a  third  of  all  home-mortgage  financ- 
ing. The  share  accounts  of  most  of  these 
associations  are  insured  by  the  Federal  Sav- 
ings and  Loan  Insurance  Corporation.  The 
favorable  experience  of  these  associations  in 
recent  years  has  permitted  the  Corporation 


to  build  up  reserves  against  possible  future 
losses.  To  further  protect  investors  in  these 
associations  in  the  event  of  future  emergency, 
I  again  recommend  legislation  to  provide,  on 
a  stand-by  basis,  authority  for  both  the  Fed- 
eral home-loan  banks  and  the  Insurance 
Corporation  to  borrow  from  the  Treasury. 
These  provisions,  which  should  become  ef- 
fective in  1950,  would  be  roughly  compara- 
ble to  the  Federal  assistance  already  available 
for  the  commercial  banking  system.  As  in 
the  case  of  the  banking  system,  moreover, 
they  should  be  accompanied  by  measures  to 
authorize  more  rapid  repayment  of  the  Fed- 
eral Government's  investment  in  these  in- 
stitutions, and  to  provide  more  effective  and 
specific  authority  for  the  Home  Loan  Bank 
Board  to  regulate  lending  by  the  member 
institutions. 

Farm  housing, — ^During  the  first  2  years 
of  the  new  farm  housing  program,  about 
40,000  low-income  farmers  will  receive  help 
in  obtaining  better  housing.  In  1951,  the 
Department  of  Agriculture  will  lend  an  es- 
timated 45  million  dollars,  as  well  as  provide 
general  technical  assistance  and  some  direct 
grants  for  farm  repairs  and  improvements. 

Public  housing  programs, — ^The  Public 
Housing  Administration  and  local  housing 
authorities  throughout  the  country  have  been 
taking  the  steps  necessary  to  get  the  new 
low-rent  public  housing  program  promptly 
under  way.  Preliminary  loans  have  already 
been  authorized  to  assist  227  communities 
plan  projects  which  will  comprise  an  esti- 
mated 220,000  dwelling  units. 

Our  goal  is  to  have  175,000  units  under 
construction  or  completed  by  the  end  of  the 
fiscal  year  1951.  Most  of  the  Federal  ex- 
penditures during  this  period  will  be  for 
temporary  loans  for  planning,  site  acquisi- 
tion, and  initial  construction.  Private  funds 
will  be  used  for  much  of  the  construction 
financing  and  nearly  all  of  the  permanent 
financing.    The  Federal  Government  indi- 


80 


Harry  S.  Truman,  igp 


Jan.  9    [9] 


rectly  guarantees  the  local  housing  authority 
obligations  issued  for  these  purposes  by  con- 
tracting to  pay  annual  contributions  suffi- 
cient to  maintain  the  low  rents  required  for 
the  projects. 

In  addition,  the  Public  Housing  Adminis- 
tration supervises  the  management  and  dis- 
position of  450,000  permanent  and  tempo- 
rary housing  units  constructed  to  meet 
emergency  war  and  veterans'  needs.  In  the 
fiscal  year  195 1,  an  estimated  20,000  per- 
manent units  will  be  sold  and  38,000  tem- 
porary units  will  be  transferred  to  local 
agencies  or  demolished.  This  disposition  of 
both  types  of  housing  can  be  accelerated  if 
the  Congress  enacts  the  amendments  to  basic 
legislation  which  I  have  previously  recom- 
mended. Expenditures  of  these  programs 
are  more  than  covered  by  receipts  from  sales 
and  rentals;  in  addition  to  covering  current 
expenses,  receipts  from  sales  and  rentals  will 
result  in  62  million  dollars  in  miscellaneous 
receipts  to  the  Treasury  in  the  fiscal  year 
1951. 

General  housing  aids, — Under  recent 
legislation,  the  Housing  and  Home  Finance 
Administrator  is  initiating  the  comprehen- 
sive program  of  housing  research  which  I 
have  long  advocated  as  a  necessity  to  achieve 
our  national  housing  objective.  The  long- 
range  objective  of  this  program  is  to  improve 
knowledge  about  housing  in  order  to  aid  in 
cost  reduction  and  in  stimulating  the  in- 
creased and  sustained  production  of  housing. 
Emphasis  is  being  placed  upon  development 
of  research  plans  with  full  participation  by 
other  interested  public  and  private  groups, 
so  as  to  assure  the  maximum  possible  utiliza- 
tion of  existing  information  and  research 
facilities. 

Slum  clearance  and  community  develop- 
ment,— Orderly  development  and  redevelop- 
ment of  our  cities  and  metropolitan  areas  is 
essential  if  we  are  to  realize  the  full  potential 
growth  in  production  and  living  standards 


in  the  decades  to  come.  Each  city  clearly  has 
the  primary  responsibility  for  initiating  and 
carrying  through  the  far-reaching  recon- 
struction plans  required  to  meet  its  peculiar 
needs. 

Under  the  provisions  of  the  new  slum 
clearance  and  community  redevelopment 
program,  the  Federal  Government  now  can 
provide  financial  assistance  needed  to  aug- 
ment local  resources.  Actual  development 
will  necessarily  proceed  gradually,  area  by 
area,  with  carefully  planned  provision  for 
the  housing  of  families  displaced  from  slum 
areas  and  for  the  uses  most  appropriate  for 
the  redeveloped  areas.  For  the  first  2  years 
of  the  program,  Federal  expenditures  will 
comprise  loans  to  local  public  agencies  to 
help  them  prepare  plans  and  begin  acquisi- 
tion of  sites.  When  acceptable  local  project 
plans  are  presented,  the  Federal  Government 
contracts  to  pay  a  maximum  of  two-thirds  of 
all  net  project  costs.  Contracts  for  loans 
and  grants  up  to  325  million  dollars  for  the 
fiscal  year  195 1  are  authorized  in  the  basic 
statute.  The  grants  will  not  actually  be  paid 
until  several  years  hence  when  the  land  as- 
sembly projects  are  completed,  the  redevel- 
oped land  sold  or  leased,  and  net  project 
costs  finally  determined. 

The  Reconstruction  Finance  Corporation 
will  continue  to  lend  to  public  agencies  for 
transit  lines,  tunnels,  and  other  self-liqui- 
dating projects  in  cases  where  private  fi- 
nancing is  not  initially  available  on  reason- 
able terms.  Private  refinancing  last  year  of 
the  large  outstanding  loan  to  the  Triborough 
Bridge  and  Tunnel  Authority  has  made  suf- 
ficient funds  available  to  finance  the  new 
commitments  currendy  anticipated. 

Under  legislation  enacted  last  year,  the 
General  Services  Administration  is  again 
making  advances  to  State  and  local  govern- 
ments for  public  works  planning.  These  ad- 
vances are  repayable  when  the  actual  con- 
struction occurs.    The  2-year  program  of  roo 


81 


[g]    Jan.  9 


Public  Papers  of  the  Presidents 


million  dollars  will  permit  preparation  of 
plans  for  public  works  estimated  to  cost  more 
than  3  billion  dollars.  Every  effort  is  being 
made  to  achieve  proper  coordination  in  the 
planning  of  Federal,  State,  and  local  public 
works  and  to  emphasize  projects  most  appro- 
priate in  the  event  of  possible  economic 
emergencies. 

Major  disasters  in  the  future  as  in  the  past 
will  from  time  to  time  require  prompt  Fed- 
eral assistance  to  stricken  communities.  I 
again  urge  enactment  of  pending  legislation 
to  provide  in  advance  adequate  funds  to 
meet  such  needs. 

Education  and  General  Research 

If  education  and  research  are  to  play  their 
full  role  in  strengthening  our  democratic  so- 
ciety, we  must  expand  our  basic  research,  we 
must  devise  types  of  education  that  will  pre- 
pare youth  more  effectively  for  participation 
in  modern  society,  and  we  must  provide  bet- 
ter educational  opportunities  for  more  of  our 
people. 

It  is  predominantly  a  responsibility  of  all 
government — ^local,  State,  and  Federal — to 
provide  for  the  education  of  our  citizens. 
The  Federal  Government  for  many  years 
has  given  financial  aid  to  special  aspects  of 
education,  such  as  vocational  education,  and 
to  institutions  for  special  groups,  such  as 
Howard  University.  It  has  become  in- 
creasingly evident  that  Federal  support  of  a 
more  general  character  is  needed  if  satisfac- 
tory educational  opportunities  are  to  be  made 
available  for  all.  The  Nation  cannot  afford 
to  waste  human  potentialities,  as  we  are 
now  doing,  by  failing  to  provide  adequate 
elementary  and  secondary  education  for  mil- 
lions of  children  and  by  failing  to  help  hun- 
dreds of  thousands  of  young  people  who 
could  benefit  from  higher  education. 

The  importance  of  this  need  requires  that 


we  provide  substantial  Federal  assistance  to 
States  for  general  educational  purposes  and 
for  certain  other  important  programs  in  this 
field. 

To  progress  toward  these  objectives,  this 
Budget  includes  expenditures  for  education 
and  general  research  (not  including  large 
amounts  in  veterans,  national  defense,  and 
other  categories)  of  434  million  dollars  in 
the  fiscal  year  1951,  compared  with  125  mil- 
lion dollars  in  1950.  More  than  three- 
fourths  is  for  grants  to  States.  The  increase 
is  entirely  accounted  for  by  the  additional 
expenditures  in  195 1  resulting  from  the  new 
legislation  I  am  recommending.  This  leg- 
islation will  entail  a  further  moderate  in- 
crease in  later  years. 

Promotion  of  education — Elementary  and 
secondary, — ^The  high  mobility  that  charac- 
terizes our  people  means  that  no  State  is 
immune  to  the  effects  of  ignorance  and  il- 
literacy in  other  States.  The  welfare  of  the 
Nation  as  a  whole  demands  that  the  present 
educational  inequalities  be  reduced.  Educa- 
tional inequalities  are  primarily  due  to  dif- 
ferences in  the  financal  resources  of  States 
and  localities.  Income  per  capita  in  some 
States  is  less  than  half  as  great  as  in  others. 
The  States  with  the  lowest  incomes  have  the 
greatest  proportion  of  school-age  children 
and  are  unable  to  finance  a  fair  educational 
opportunity  even  with  greater  effort  in  terms 
of  tax  burden. 

School  enrollments  in  practically  every 
State  have  risen  recently  and  will  continue 
to  rise  owing  to  the  increased  birth  rate. 
Millions  of  our  children  are  now  taught  in 
overcrowded  classrooms.  For  others  edu- 
cation is  provided  only  on  a  part-time  basis. 
At  the  very  time  when  we  need  more  and 
better  teachers,  schools  must  still  employ 
tens  of  thousands  whose  qualifications  do 
not  meet  the  standards  necessary  to  provide 
a  satisfactory  quality  of  teaching.    Because 


82 


Harry  S.  Truman,  ig$o 


Jan.  9    [9] 


salaries  are  generally  inadequate,  too  few 
capable  young  people  are  preparing  to  enter 
the  teaching  profession. 

For  these  reasons  I  urge  the  Congress  to 
complete  legislative  action  to  permit  the  Fed- 
eral Government  to  aid  the  States  in  support 
of  the  maintenance  and  operation  costs  of 
a  basic  minimum  program  of  elementary 
and  secondary  education.  The  Budget  pro- 
vides for  beginning  this  aid  in  the  fiscal 
year  195 i. 

There  is  a  shortage  of  school  buildings 
in  many  parts  of  the  country  due  to  the 
wartime  deferment  of  construction  and  the 
increase  in  the  school-age  population.  In 
many  localities  the  need  for  facilities  results 
from  the  sudden  and  substantial  impact  of 


Federal  activities.  I  recommend  that  the 
Congress  enact  legislation  providing  for 
grants  to  States  for  surveys  of  their  need 
for  facilities  and  their  resources,  and  grants 
for  the  construction  of  buildings  in  those 
particular  areas  where  Federal  activities  have 
been  responsible  for  increased  enrollments. 

For  a  number  of  years  several  Federal 
agencies,  under  separate  authorizations,  have 
been  helping  to  finance  the  education  of  chil- 
dren living  on  Federal  property  and  in  com- 
munities affected  by  Federal  activities.  I 
recommend  that  the  Congress  enact  general 
legislation  to  establish  a  single  program  for 
all  Federal  agencies. 

Promotion  of  education — Higher  educa- 
tion,— ^Large  numbers  of  young  people  and 


Education  anu  General  Research 


[  Fiscal  years. 


In  millions  ] 

Expenditures 


1949 
actual 


ipso 
estimated 


I9SI 
estimated 


"New  ohligational 
authority  for  1951 
Appropria- 
tions 


70 


125 


434 


U55 


Other 


Program  or  agency 
Promotion  of  education: 
Present  programs: 

Office  of  Education  (Federal  Security  Agency)  . . 
General  Services  Administration  and  Interior. . 
Proposed  legislation: 
Elementary  and  secondary  education: 

General  aid  for  operating  expenses 

Surveys  and  emergency  construction 

Children  on  Federal  property  and  in  emer- 
gency areas 

Higher  education:  General  assistance  to  college 

students 

Educational  aid  to  special  groups 

Library  and  museum  services 

General  purpose  research: 
Department  of  Commerce: 

Seventeenth  decennial  census 

Odier  Census  Bureau  programs 

National  Bureau  of  Standards 

National   Science  Foundation   (proposed  legisla- 
tion)   

Other  agencies 


Total 

*Less  than  one-half  million  dollars. 
This  Budget  also  includes  2  million  dollars  of  appropriations  to  liquidate  prior  year  contract  authori- 
zations. 


$33 

$34 

$37 

$38 

6 

8 

C) 

290 

22 

7 
I 

C) 

300 

45 

7 

I 

3 

7 

12 

% 

$1 

9 

II 

12 

12 

2 

45 

33 

30 

6 

7 

7 

7 

10 

12 

II 

10 
I 

6 

I 

I 

C) 

83 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


adults  wish  to  continue  their  education  be- 
yond high  school  in  order  to  prepare  for  en- 
trance to  professional  schools,  to  receive  addi- 
tional technical  or  vocational  training  or  to 
round  out  their  general  education.  For 
many  of  our  people,  postsecondary  education 
on  a  part-time  or  full-time  basis,  provided 
in  institutions  located  v^ithin  commuting  dis- 
tance of  home,  would  meet  their  needs  at  low 
cost.  Several  of  the  States  are  now  develop- 
ing community  institutions  for  this  pur- 
pose. I  have  asked  the  Federal  Security 
Administrator  to  make  a  comprehensive 
study  of  this  development  in  order  to  deter- 
mine whether  the  Federal  Government 
might  appropriately  take  any  action  to  en- 
courage the  States  and  localities  to  estab- 
lish and  expand  "community  colleges." 

Primarily  because  of  low  family  incomes 
and  of  the  high  costs  involved,  more  than 
half  of  our  young  people  who  could  benefit 
from  a  college  education  are  now  unable  to 
attend.  This  failure  to  develop  to  the  fullest 
extent  the  capacities  of  our  young  people 
is  a  matter  of  national  concern.  As  a  step 
toward  correcting  this  situation,  I  shall  trans- 
mit to  the  Congress  a  legislative  proposal  to 
authorize  a  limited  Federal  program  to  assist 
capable  youth  who  could  not  otherwise  do  so 
to  pursue  their  desired  fields  of  study  at  the 
institutions  of  their  choice. 

This  Budget  includes  i  million  dollars  as  a 
tentative  estimate  of  appropriations  needed 
in  the  fiscal  year  1951  to  establish  the  re- 
quired organization  and  to  initiate  the  pro- 
gram. Assistance  to  students  would  begin 
in  the  fiscal  year  1952. 

National  Science  Foundation, — ^The  Gov- 
ernment is  investing  hundreds  of  millions  of 
dollars  in  research — primarily  in  applied  re- 
search in  the  military,  atomic  energy,  and 
health  fields.  We  must  consider,  however, 
not  only  the  ways  in  which  the  great  reser- 
voir of  scientific  knowledge  already  at  our 
disposal  can  best  be  utilized,  but  also  the 


best  paths  to  follow  for  the  discovery  of  fur- 
ther basic  knowledge.  To  this  end,  we 
urgently  need  a  National  Science  Foundation 
to  stimulate  basic  research  and  to  assure  an 
effective  balance  among  the  Federal  research 
programs.  By  developing  a  national  research 
policy  and  by  formulating  a  truly  national 
research  budget  it  should  be  possible  to  relate 
the  activities  of  public  and  private  institu- 
tions in  a  concerted  effort  to  advance  the 
frontiers  of  knowledge.  The  Budget  pro- 
vides 500  thousand  dollars  for  the  initial 
administrative  expenses  of  the  proposed  Na- 
tional Science  Foundation,  in  the  expectation 
that  the  Congress  will  enact  legislation,  al- 
ready passed  by  the  Senate,  to  establish  it. 

Seventeenth  decennial  census, — ^The  seven- 
teenth decennial  census  of  population,  hous- 
ing, and  agriculture,  to  be  taken  this  year, 
will  provide  basic  data  essential  to  important 
decisions  by  businessmen,  governments,  and 
other  groups  throughout  the  Nation.  Ex- 
penditures for  the  census,  estimated  at  45 
million  dollars  in  1950,  will  drop  to  33  mil- 
lion dollars  in  195 1,  and  continue  to  decrease 
in  succeeding  years  as  tabulation  and  publi- 
cation of  the  results  are  completed. 

Agriculture  and  Agricultural 
Resources 

American  agriculture  is  in  a  period  of 
transition  from  the  peak  production  require- 
ments of  the  war  and  immediate  postwar 
years  to  the  normal  requirements  of  a  peace- 
time economy.  During  the  war,  every  effort 
was  made  to  increase  agricultural  produc- 
tion to  meet  the  needs  of  our  war  economy 
and  of  our  allies.  In  some  cases  desirable 
long-run  goals  for  conservation  of  soil 
resources  were  deferred  in  the  effort  to 
increase  production  and  to  minimize  the 
manpower  requirements  in  agriculture. 
War  dislocations  and  crop  shortages  abroad 
created  an  abnormal  export  demand  for  food 


84 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


Agriculture  and  Agricultural  Resources 
[  Fiscal  years.    In  millions  ] 

Expenditures 


1949 
Program  or  agency  actual 

Loan  and  investment  programs: 
Department  of  Agriculture: 

Commodity  Credit  Corporation $1,  600 


Farmers'  Home  Administration 

Rural  Electrification  Administration 

Other  programs 

Other   agencies 

Other  financial  aids: 

Department  of  Agriculture: 

Conservation  and  use  (including  acreage  allot- 
ments and  marketing  quotas) 

Removal  of  surplus  agricultural  commodities. . 

Sugar  Act 

International  Wheat  Agreement 

Other  agencies 

Agricultural  land  and  water  resources 

Other  development  and  improvement  of  agriculture: 

Present  programs 

Commodity  Exchange  Authority  (proposed  legis- 
lation)   


123 

305 

-63 


182 
75 
56 

— 2 
59 

177 


1950 
estimated 


.533 

26 

362 

6 

3 


285 


C) 


63 
82 

64 


161 


I95I 

estimated 


$952 

26 

436 

—  I 


314 
114 

69 
76 

68 

149 


l^ew  obligational 
authority  for  1951 
Appropria- 
tions 


$35 
10 
10 
2 


319 

no 

68 

82 


Other 


$110 
450 


68 


169 


Total 2,512  2, 671  2, 206  875  580 

^  Additional  borrowing  authority  of  2  billion  dollars  is  recommended,  to  become  available  in  the  fiscal 
year  1950. 

^  Less  than  one-half  million  dollars. 


grains  and  a  few  other  farm  products,  fi- 
nanced largely  by  United  States  foreign  re- 
lief and  aid  programs.  In  the  next  few 
years,  this  abnormal  demand  can  be  ex- 
pected to  adjust  to  a  more  normal  level  and 
distribution  pattern  for  world  trade. 

Although  this  transition  from  war  to 
peacetime  needs  has  caused  a  decline  in  farm 
prices  and  a  loss  in  farm  income,  the  opera- 
tion of  Government  price  supports  has 
served  to  cushion  the  decline  and  has  been 
a  major  factor  in  preventing  a  serious  post- 
war recession  in  the  economy  as  a  whole. 
The  resulting  benefits  to  workers  and  em- 
ployers, as  well  as  to  farmers,  have  been 
many  times  the  outlay  of  Federal  funds.  As 
the  necessary  adjustments  in  agriculture  are 
completed,  we  should  look  forward  to  a  re- 


duction in  budgetary  expenditures  for  this 
purpose.  The  need  for  food  and  fiber  prod- 
ucts will  continue  to  expand  as  our  national 
income  and  population  increase.  Produc- 
tion on  existing  land,  however,  must  be 
gradually  shifted  from  the  grains  and  cotton 
to  livestock  and  dairy  production,  permit- 
ting marginal  lands,  whose  soil  is  in  danger 
of  loss  from  erosion  of  wind  and  water,  to  be 
put  back  into  pasture  and  soil-conserving 
crops.  It  is  important  that  Government 
programs  facilitate  these  adjustments  within 
agriculture  as  well  as  between  agriculture 
and  the  rest  of  the  economy. 

Federal  agricultural  programs,  in  addition 
to  promoting  adjustments  in  agriculture  and 
stimulating  conservation  of  soil  resources, 
are  designed  to  improve  the  efficiency  of 


85 


[g]    Jan.  9 


Public  Papers  of  the  Presidents 


farm  production,  to  provide  low-income 
farmers  an  opportunity  to  improve  their 
economic  status,  to  assure  farmers  generally 
a  reasonable  stability  in  farm  income,  and  to 
improve  the  level  of  rural  living. 

Total  Federal  expenditures  for  agriculture 
and  agricultural  resources  increased  from 
2.5  billion  dollars  in  1949  to  an  estimated 
2.7  billion  dollars  in  1950.  Both  years  reflect 
the  operation  of  price-support  programs  as 
farm  prices  declined.  A  decrease  of  465 
million  dollars  is  expected  in  195 1,  resulting 
from  smaller  oudays  on  price  supports  as 
acreage  allotments  and  marketing  quotas 
serve  to  reduce  production  of  some  1950 
crops,  particularly  cotton  and  corn. 

Price  support, — ^Net  outlays  of  the  Com- 
modity Credit  Corporation  amounted  to  1.6 
billion  dollars  in  1949.  This  was  the  first 
year  since  before  the  war  that  mandatory 
price  supports  have  resulted  in  large  cash 
expenditures  and  the  accumulation  of  loans 
and  inventories  in  the  hands  of  the  Corpora- 
tion. Expenditures  in  1950,  estimated  at  1.5 
billion  dollars,  will  be  largely  for  corn  and 
cotton,  with  smaller  outlays  for  peanuts, 
rice,  tobacco,  milk  and  milk  products,  pota- 
toes, beans,  cottonseed,  linseed  oil,  and  vari- 
ous other  products.  Approximately  90  mil- 
lion dollars  of  the  expenditures  will  be  for 
construction  of  new  grain-storage  facilities. 
In  1 95 1,  estimated  Commodity  Credit  Cor- 
poration expenditures  decline  to  952  million 
dollars  because  of  the  expected  effects  of 
acreage  allotments  and  marketing  quotas  on 
the  1950  crops.  In  later  years,  price-support 
expenditures  should  decline  further  as  pro- 
duction is  adjusted  to  normal  demand. 

Estimates  for  price-support  expenditures 
are,  of  course,  highly  tentative,  since  the 
actual  expenditures  depend  upon  many  fac- 
tors which  cannot  be  accurately  forecast, 
such  as  the  volume  of  exports,  the  rate  of 
domestic  consumption,  and  the  influence  of 
insects  and  weather  conditions  on  yields. 


The  operation  of  price  supports  has  re- 
sulted in  the  accumulation  of  large  inven- 
tories, particularly  of  cotton,  wheat,  and 
corn.  These  commodity  inventories  repre- 
sent assets  which  provide  insurance  against 
possible  crop  shortages  in  future  years.  It  is 
estimated  that  the  financial  requirements  of 
the  Commodity  Credit  Corporation  in  the 
fiscal  year  1951  may  exceed  its  present  bor- 
rowing authorization.  I  recommend  that 
the  Corporation  be  given  an  additional  bor- 
rowing authority  of  2  billion  dollars,  to  be 
available  beginning  in  1950. 

Farmers'  Home  Administration, — ^The 
Farmers'  Home  Administration  provides 
management  assistance  to  low-income  farm- 
ers, and  makes  loans  for  farm  enlargement 
and  development,  production  and  subsist- 
ence, water  facilities,  homesteads,  and  farm 
housing.  (Farm  housing  loans  financed 
under  the  borrowing  authorization  provided 
in  the  Housing  Act  of  1949  are  classified 
under  housing  and  community  develop- 
ment.) The  apparent  decline  in  expendi- 
tures for  the  Farmers'  Home  Administra- 
tion in  1950  and  195 1  compared  with  1949 
is  due  to  a  shift  in  financing  provisions.  In 
1949,  loans  were  financed  from  appropriated 
funds,  and  all  loans  were  shown  as  expendi- 
tures, with  collections  on  old  loans  going 
directly  into  miscellaneous  receipts  of  the 
Treasury.  In  1950  and  195 1,  most  of  the 
loan  programs  will  be  financed  by  a  borrow- 
ing authorization,  and  the  expenditure  figure 
will  reflect  loans  less  collections. 

Rural  electrification  and  rural  tele- 
phones,— On  June  30,  1949,  approximately 
78  percent  of  all  farms  were  electrified.  As 
coverage  is  gradually  extended  to  the  re- 
maining areas.  Rural  Electrification  Admin- 
istration loans  for  electrification  will  decline. 
Beginning  in  the  fiscal  year  1950,  the  Rural 
Electrification  Administration  will  also 
make  loans  to  rural  telephone  cooperatives 
and  other  independent  telephone  companies 


86 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


under  recently  enacted  legislation.  Loans 
for  this  purpose  are  expected  to  increase  in 
195 1.  Net  loan  expenditures  of  the  Rural 
Electrification  Administration  are  estimated 
to  be  427  million  dollars  in  195 1,  compared 
with  355  million  dollars  in  1950  and  299  mil- 
lion dollars  in  1949.  I  recommend  that  the 
Rural  Electrification  Administration  be 
given  new  loan  authority  for  the  fiscal  year 
1 95 1  amounting  to  450  million  dollars,  of 
which  50  million  dollars  will  be  available  for 
the  rural  telephone  loan  program. 

Conservation, — ^The  Soil  Conservation 
Service  provides  technical  advice  and  assist- 
ance to  farmers  in  establishing  a  sound  pro- 
gram of  farm  management  to  insure  ade- 
quate protection  and  development  of  soil 
resources.  Conservation  practices  are  also 
encouraged  through  the  agricultural  con- 
servation payments  program  carried  out  by 
the  Production  and  Marketing  Administra- 
tion. By  the  end  of  the  fiscal  year  1951, 
about  90  percent  of  the  farms  of  the  country 
will  be  in  organized  soil  conservation  dis- 
tricts. Progress  is  being  made  in  the  prep- 
aration and  application  of  desirable  farm 
management  plans  for  the  adequate  protec- 
tion of  our  soil  resources,  but  still  greater 
emphasis  will  need  to  be  given  in  future 
years  to  soil  and  water  conservation,  includ- 
ing the  Department's  upstream  and  on-the- 
farm  flood-control  program,  to  reduce  silta- 
tion  in  the  downstream  areas  and  to  enhance 
the  value  of  projects  constructed  by  the 
Bureau  of  Reclamation  and  the  Corps  of 
Engineers. 

Expenditures  for  the  Soil  Conservation 
Service  and  for  flood-control  work  of  the 
Department  of  Agriculture  are  expected  to 
increase  from  64  million  dollars  in  1950  to 
68  million  dollars  in  1951.  Expenditures 
for  the  conservation  and  use  program  and 
for  administering  acreage  allotments  and 
marketing  quotas  are  estimated  to  be  314 
million  dollars  in  195 1  compared  with  285 


million  dollars  in  1950  and  182  million  dol- 
lars in  1949.  I  am  recommending  that  the 
advance  authorization  for  the  conservation 
and  use  program  in  the  1951  crop  year, 
which  will  largely  determine  expenditures 
in  the  fiscal  year  1952,  be  maintained  at  the 
1950  crop  year  level  of  285  million  dollars. 

Other  financial  aids. — ^Under  the  terms  of 
the  International  Wheat  Agreement,  the 
United  States  will  export  168  million  bushels 
of  wheat  each  year  for  4  years  at  a  price  not 
in  excess  of  |i.8o  a  bushel.  In  return,  im- 
porting countries  have  agreed  to  buy  the 
wheat  at  not  less  than  certain  specified  min- 
imum prices.  In  the  first  year,  the  effective 
export  price  for  United  States  wheat  is  $1.80. 
It  is  estimated  that  the  Commodity  Credit 
Corporation,  through  which  the  program  is 
financed,  will  spend  82  million  dollars  in 
the  fiscal  year  1950  to  bridge  the  gap  be- 
tween the  $1.80  export  price  and  the  higher 
domestic  market  price.  In  1951,  such  costs 
are  estimated  at  y6  million  dollars.  The 
Corporation  is  to  be  reimbursed  for  each 
year's  cost  of  the  Wheat  Agreement  from  ap- 
propriated funds.  In  195 1,  an  appropria- 
tion of  82  million  dollars  is  recommended  to 
reimburse  the  Corporation  for  the  cost  of 
the  Wheat  Agreement  in  the  fiscal  year  1950. 

Additional  financial  aid  is  provided  for 
farmers  through  the  Sugar  Act  of  1948  and 
through  the  permanent  appropriation  for 
removal  of  surplus  agricultural  commodities. 
Expenditures  under  the  Sugar  Act  depend 
on  the  volume  of  domestic  sugar  production 
for  which  sugar  growers  receive  payments 
at  the  rates  determined  in  the  legislation. 
It  is  estimated  that  expenditures  under  the 
Sugar  Act  will  be  69  million  dollars  in  1951. 
The  permanent  appropriation  for  removal  of 
surplus  agricultural  commodities,  established 
in  1935,  provides  a  fund  each  year  equal  to 
30  percent  of  customs  duties.  In  195 1,  it  is 
estimated  that  no  million  dollars  will  be 
available  in  this  fund. 

87 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


Other  development  and  improvement  of 
agriculture. — Included  in  this  category  are 
the  continuing  basic  services  for  agriculture, 
such  as  research  on  crop  varieties,  livestock 
and  poultry,  and  the  production  and  mar- 
keting of  farm  products;  control  and  erad- 
ication of  insects  and  plant  and  animal  dis- 
eases; payments  to  States  for  experiment 
stations  and  cooperative  extension  work;  and 
the  general  overhead  expenses  of  the  De- 
partment. For  1 95 1,  I  recommend  legisla- 
tion to  strengthen  the  regulation  of  commod- 


ity exchanges  by  the  Commodity  Exchange 
Authority. 

Natural  Resources 

This  Nation  has  learned  in  recent  years 
what  it  means  to  have  limited  natural  re- 
sources. Our  soil,  forests,  water,  and  min- 
erals have  been  drawn  upon  prodigiously  to 
support  two  major  wars  and  the  rapid  eco- 
nomic growth  of  our  country.  If  we  are  to 
continue  to  expand  production  and  employ- 


Natural  Resources 


[  Fiscal  years. 


Program  or  agency 
Atomic  energy: 

Atomic  Energy  Commission 

Other   agencies 

Land  and  water  resources: 

Corps  of  Engineers  (Army,  civil  functions) 

Department  of  the  Interior: 

Bureau  of  Reclamation 

Bonneville  Povtrer  Administration  and  South- 
western and  Southeastern  power  systems .... 
Research  in  utilization  of  salt  water  (proposed 

legislation) 

Other 

Tennessee  Valley  Authority  (net) 

Department  of  State  and  other 

Forest  resources: 

Forest  Service  and  other  (Agriculture) 

Department  of  the  Interior 

Mineral  resources: 

Bureau  of  Mines  and  other  Interior 

Department  of  the  Navy  and  other 

General  resources  surveys  (Interior) 

Fish  and  wildlife  resources  (Interior  and  other)  .... 
Recreational  use  of  resources: 

Department  of  the  Interior 

Baltimore- Washington  Parkway  (proposed  legis- 
lation)   


In  millions  ] 

Expenditures 


"New  obligational 
authority  for  ig^i 

^949  ^950  1951       Appropria- 

actual      estimated     estimated        tions 


$621 
I 

401 

240 

29 


32 

27 

4 

63 
3 

29 
13 
13 
18 

19 


$673 

o 

486 

334 

42 


43 

52 

7 

76 
3 

37 
18 
16 
28 

29 


1,845 


$817 

563 

398 

55 


96 
13 

82 
2 

36 

20 
20 
29 

38 


2,  218 


$266 

557 

355 

37 

I 

47 

108 

9 

84 
I 

35 
15 
20 
26 

31 

3 

'i>594 


Other 

$334 


28 


C) 


Total 1,512  I,  »45  2, 2i«        "1,594  37o 

^  Less  than  one-half  million  dollars. 

^  This  Budget  also  includes  500  million  dollars  of  appropriations  to  liquidate  prior  year  contract  authori 


88 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


ment  we  must  use  our  remaining  resources 
with  the  greatest  possible  effectiveness,  fol- 
lowing sustained-yield  principles,  develop- 
ing resources  as  yet  unused,  and  restoring 
where  possible  the  resources  we  have 
depleted. 

A  large  share  of  the  responsibility  for  such 
action  falls  upon  the  Federal  Government, 
with  respect  to  both  resources  on  public 
lands  and  resources  in  private  ownership. 
Atomic  energy  development  depends  upon 
our  pressing  ahead  with  the  present  Federal 
program  on  a  broad  scale.  Continued  eco- 
nomic growth  in  large  areas  of  our  country 
depends  upon  steady  progress  in  Federal 
investment  for  flood  control,  reclamation, 
electric  power,  and  related  facilities.  The 
wisdom  with  which  we  utilize  our  mineral 
resources  will  influence  our  economic 
strength  and  security  for  generations  to  come. 
Continued  public  investment  in  these  areas  is 
a  prerequisite  in  many  fields  to  the  expan- 
sion of  the  private  investment  which  we  want 
to  encourage. 

The  dollars  which  the  Federal  Govern- 
ment spends  on  these  programs  are  largely 
investment  dollars.  In  many  cases,  such  as 
irrigation,  power  projects,  and  the  manage- 
ment and  improvement  of  public  lands  and 
forests,  the  activities  are  wholly  or  partially 
self-liquidating.  In  all  cases,  economic 
benefits  will  accrue  to  the  Nation  for  many 
years. 

The  1 95 1  Budget  provides  for  total  ex- 
penditures of  2.2  billion  dollars  in  this  area, 
an  increase  of  373  million  dollars  from 
1950.  Over  one-third  of  the  total  and  of  the 
increase  is  attributable  to  expenditures  for 
atomic  energy.  The  balance  represents  pri- 
marily the  requirements  of  projects  under 
way  in  the  fields  of  flood  control  and  recla- 
mation. This  Budget  provides  for  no  new 
projects  in  these  areas.  Despite  the  large 
number  of  highly  meritorious  projects  which 


have  already  been  authorized  for  construc- 
-  tion,  we  should  not  at  this  time  add  to  the 
present  high  level  of  commitments.  This 
policy  is  necessary  both  because  of  our  over- 
all fiscal  position  and  in  order  to  provide 
the  greatest  possible  measure  of  stability,  un- 
der present  economic  conditions,  in  the  rate 
of  Federal  public  works  expenditures. 

Atomic  energy, — The  United  States  is 
seeking  both  to  develop  atomic  energy  for 
national  defense  purposes  and  to  realize 
the  great  promise  in  its  use  for  industrial 
and  other  peacetime  purposes.  Our  atomic 
energy  development  program  is  a  large  ven- 
ture in  diverse  fields — scientific  research, 
medicine,  engineering,  industry — and  will 
continue  to  require  substantial  outlays  in 
the  next  few  years. 

The  195 1  expenditures  include  increased 
amounts  for  the  production  of  fissionable 
materials  and  weapons,  and  for  the  advance- 
ment of  the  science  and  technology  of  atomic 
energy,  including  accelerated  construction  of 
new  facilities  and  development  of  new  types 
of  nuclear  reactors.  It  is  principally  through 
the  development  of  new  reactors  to  produce 
fissionable  materials  and  radioisotopes,  gen- 
erate power,  and  propel  ships  and  aircraft, 
that  the  Atomic  Energy  Commission  expects 
to  evolve  means  of  utilizing  for  peaceful 
purposes  the  energy  released  by  nuclear 
fission. 

Land  and  water  resources, — ^We  have 
learned  a  great  deal  in  recent  years  about  the 
extensive  benefits  which  can  be  achieved  by 
proper  development  of  our  land  and  water 
resources — ^including  navigation,  flood  con- 
trol, reclamation,  power  development,  soil 
and  forest  conservation,  preservation  of  fish 
and  wildlife,  and  recreation.  In  the  interest 
of  sounder  and  more  efficient  programs  in 
later  years,  emphasis  in  this  Budget  is  placed 
on  more  thorough  investigation  and  ad- 
vance planning,  and  on  assembling  more 


41-355—^65 


89 


[9]    Jan.  9 


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complete  basic  data.  However,  the  frame- 
work of  Federal  legislation  and  administra- 
tive organization  under  which  we  are 
carrying  on  development  programs  is  in 
many  respects  inadequate  and  obsolete. 

In  order  to  obtain  a  thorough  review  of 
the  present  basic  legislation,  I  have  created 
by  recent  Executive  Order  a  Water  Resources 
Policy  Commission,  which  will  make  recom- 
mendations later  this  year  with  respect  to 
the  broad  policies  which  should  guide  Fed- 
eral participation  in  the  development,  con- 
servation, and  use  of  water  resources — ^both 
upstream  and  downstream — and  closely  re- 
lated land-use  activities.  On  the  basis  of 
these  recommendations,  I  expect  that  it  will 
be  possible  to  propose  up-to-date  and  effec- 
tive policies  for  the  Federal,  State,  local  and 
private  efforts  which  are  needed  to  make 
proper  use  of  water  resources  throughout 
the  country.  Some  changes  in  present  Fed- 
eral legislation  can  and  should  be  made  at 
this  session  of  the  Congress,  but  major 
changes  should  be  deferred  until  the  Com- 
mission's recommendations  are  available. 

We  also  need  to  find  more  effective  ar- 
rangements for  administering  Federal  laws 
and  programs  concerning  land  and  water- 
resource  development.  I  have  already  rec- 
ommended that  the  Congress  authorize  the 
consolidation  of  a  number  of  Federal  activ- 
ities in  the  Pacific  Northwest  into  a  Colum- 
bia Valley  Administration,  and  provide  for 
its  proper  integration  with  other  Federal 
agencies  and  with  State  and  local  respon- 
sibilities. In  other  areas  also  we  should 
be  alert  to  the  opportunities  for  better 
administrative  arrangements,  building  on 
successful  experience  in  the  Tennessee  Val- 
ley and  elsewhere,  and  adapting  organiza- 
tional patterns  to  the  particular  circum- 
stances of  different  regions. 

The  activities  of  the  Bureau  of  Reclama- 
tion and  the  flood-control  program  of  the 
Corps  of  Engineers,  involving  the  construc- 


tion of  dams,  power  facilities,  canals,  chan- 
nels, and  levees,  will  be  limited  in  195 1  to 
continuation  of  work  on  projects  started 
in  prior  years.  Bureau  of  Reclamation  proj- 
ects now  under  way  will  require  an  expendi- 
ture increase  of  64  million  dollars  in  1951. 
Expenditures  required  in  195 1  to  continue 
going  work  of  the  Corps  of  Engineers  will  in- 
crease by  77  million  dollars  over  the  1950 
total. 

The  expenditures  by  the  Corps  of  Engi- 
neers and  Bureau  of  Reclamation  will  result 
in  materially  increased  power  facilities  in 
the  next  few  years.  In  addition,  continuing 
progress  on  the  existing  programs  of  the 
Bonneville  and  Southwestern  power  systems 
will  result  in  a  further  increase  in  transmis- 
sion facilities.  An  increase  of  44  million 
dollars  is  recommended  for  the  Tennessee 
Valley  development,  notably  for  expansion 
of  power  facilities  to  meet  the  growing  needs 
of  the  atomic  energy  program. 

Experience  in  recent  years  has  shown  that 
it  may  not  be  possible  to  meet  the  shortages 
of  water,  which  are  a  threat  in  some  areas, 
through  our  extensive  water-resource  pro- 
grams. I  recommend,  therefore,  that  the 
Congress  enact  legislation  authorizing  the 
initiation  of  research  to  find  means  for  trans- 
forming salt  water  into  fresh  water  in  large 
volume  at  economical  costs. 

Public  lands  and  national  forests. — Over 
many  years,  our  policy  with  respect  to  public 
lands  and  forests,  now  comprising  over 
900,000,000  acres,  has  gradually  been  broad- 
ened from  one  of  disposal  to  one  of  manage- 
ment and  conservation.  The  range,  forest, 
and  mineral  resources  of  these  lands  have 
considerable  commercial  value  and  bring  in 
substantial  receipts;  in  addition  they  have 
important  watershed,  wildlife,  and  recrea- 
tional value.  In  some  respects,  we  have  a 
long  way  to  go  before  we  shall  be  managing 
and  conserving  these  resources  to  achieve 
their  full  use  and  preservation.    We  should 


90 


Harry  S.  Truman,  igp 


Jan.  9    [9] 


plan  to  expand  our  rehabilitation,  protection, 
and  management  of  these  resources  in  the 
years  ahead;  the  195 1  Budget  includes  in- 
creased funds  for  these  purposes. 

Mineral  resources, — The  Bureau  of  Mines 
and  the  Geological  Survey  are  carrying  on 
important  investigations  and  research  in 
order  to  ascertain  the  extent  of  our  mineral 
resources  and  the  best  means  of  conserving 
and  using  them.  In  v\&w  of  the  limited 
domestic  supplies  of  many  minerals,  there  is 
real  need  for  increased  exploration  and  con- 
servation of  strategic  and  critical  minerals. 

Through  laboratory  research  and  develop- 
mental vi^ork,  including  operation  of  demon- 
stration plants,  the  Government  has  shown 
that  some  of  our  liquid  fuel  demands  can  be 
met  from  synthetic  fuels  produced  from  oil 
shale  and  coal.  This  Budget  includes  funds 
for  a  continuation  of  efforts  to  improve  syn- 
thetic liquid  fuels,  and  to  narrow^  the  cost 
differential  betv^een  synthetic  and  natural 
petroleum  products. 

Use  of  recreational  resources. — During 
the  past  travel  season  there  v^ere  32,000,000 
visitors  to  the  181  national  park  areas.  This 
number  of  visitors  is  the  highest  in  the  his- 
tory of  the  National  Park  Service;  it  is  dou- 
ble the  number  before  the  w^ar.  This  heavy 
increase  in  the  use  of  the  park  areas  has 
enlarged  the  requirements  for  their  man- 
agement and  protection.  The  increase  of 
9  million  dollars  in  the  1951  Budget  for  the 
Park  Service  v^ill  provide  for  additional 
management  and  maintenance  costs  and  for 
some  urgently  needed  construction. 

Alas\an  resources. — Alaska  is  a  land  of 
large  natural  resources — forests,  fish  and 
w^ildlife,  minerals,  land,  and  w^ater — v^hich 
must  be  developed  in  order  for  the  area  to 
make  its  contribution  to  the  security  and 
economy  of  the  Nation.  The  195 1  pro- 
grams discussed  above  include  23  million 
dollars  for  the  development  of  natural  re- 
sources in  Alaska.    Developmental  expendi- 


tures in  Alaska  under  other  functions — in 
particular  national  defense,  transportation, 
and  social  welfare — will  amount  to  approxi- 
mately 162  million  dollars. 

Indian  land  resources, — Large  areas  of 
Indian  lands  are  rich  in  timber,  oil,  gas,  and 
other  minerals,  the  conservation  and  devel- 
opment of  which  should  be  related  to  pro- 
grams affecting  similar  lands.  As  part  of 
our  general  program  for  protecting  their 
rights  and  for  helping  the  Indians  to  become 
self-reliant  citizens,  funds  are  included  in 
this  Budget  for  initiating  the  long-range  pro- 
gram for  the  rehabilitation  of  the  Navajo 
and  Hopi  Indians  in  Arizona  and  New  Mex- 
ico. While  the  greater  portion  of  the 
amount  recommended  is  for  essential  con- 
struction of  educational  and  health  facilities 
(classified  in  social  welfare,  health,  and  secu- 
rity), provision  is  made  also  for  expanded 
conservation  and  development  of  the  re- 
sources of  the  reservations.  Funds  are  also 
included  for  some  expansion  in  conservation 
activities  on  Indian  lands  in  other  areas,  as 
well  as  for  additional  health,  education,  and 
other  benefits  to  the  Indian  population. 

Transportation  and  Communication 

Efficient  transportation  and  communica- 
tion services  play  a  major  role  in  promoting 
the  economic  growth  of  our  country  and  in 
assuring  our  national  security.  Throughout 
our  history,  the  Federal  Government  has 
traditionally  supplemented  private  enter- 
prise in  this  field,  wherever  necessary  to  as- 
sure adequate  services  at  reasonable  cost. 
To  this  end,  the  Government  provides  basic 
facilities;  it  regulates  economic  and  safety 
aspects  of  commercial  operations;  it  sub- 
sidizes essential  services  which  could  not  sur- 
vive without  Government  aid.  In  the  fiscal 
year  195 1,  an  estimated  1.7  billion  dollars 
will  be  spent  for  these  activities,  a  decline  of 
212  million  dollars  from   1950.    This  as- 


91 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


sumes  a  reduction  of  the  postal  deficit  to  a 
reasonable  level,  through  enactment  of 
postal  rate  increases. 

Most  of  the  Federal  transportation  ex- 
penditures are  for  the  provision  and  opera- 
tion of  physical  facilities.  Direct  Federal 
expenditures  for  aviation  facilities;  marine 
navigation  aids,  v^aterway  improvements, 
and  roads  will  amount  to  about  600  million 
dollars  in  195 1.  In  addition,  grants  to  State 
and  local  governments  for  the  construction 
of  highw^ays  and  airports  will  account  for 
514  million  dollars.  Although  these  pro- 
grams make  important  contributions  to  the 
development  of  our  economy,  over-all  budg- 
etary considerations  make  it  impossible  to 
proceed  with  them  as  rapidly  as  we  should 
like.  The  1951  Budget  recommendations 
have  been  held  as  close  to  the  1950  level  as 
program  commitments  would  allow. 

The  long-term  interests  of  the  general  tax- 
payer, as  well  as  the  users  of  transportation, 
will  best  be  served  by  the  development  of  a 
balanced  transportation  system,  substantially 
independent  of  Government  support.  It  is 
essential  that  the  various  promotional  and 
regulatory  activities  of  the  Government  fit 
together  into  a  unified  transportation  pro- 
gram aimed  at  achieving  that  goal.  At  my 
request,  the  Secretary  of  Commerce  recendy 
prepared  a  report  outlining  the  major  policy 
issues  which  need  to  be  resolved  in  order  to 
assure  such  a  program.  This  report  is  now 
being  reviewed  within  the  executive  branch, 
and  I  shall  later  transmit  recommendations 
for  any  legislation  or  other  action  that  may 
prove  appropriate. 

Merchant  marine, — ^Under  the  Merchant 
Marine  Act  of  1936,  the  Federal  Government 
provides  both  construction  and  operating 
subsidies  to  the  maritime  industry,  intended 
to  oflset  the  competitive  effects  of  lower 
foreign  costs.  In  the  fiscal  year  195 1,  oper- 
ating subsidies  alone  are  estimated  to  accrue 


in  the  amount  of  63  million  dollars,  about 
five  times  the  average  annual  level  before  the 
war.  Shipbuilding  subsidies  have  recendy 
averaged  close  to  45  percent  of  the  domestic 
cost  of  vessel  construction,  exclusive  of  na- 
tional defense  features  financed  entirely  by 
the  Government. 

I  am  seriously  concerned  by  the  increasing 
cost  of  these  existing  subsidies  and  by  the 
potential  cost  of  new  subsidies  now  being 
advocated.  Our  national  security  requires 
an  efficient  nucleus  of  merchant  shipping  and 
shipbuilding,  adequate  to  permit  such  ex- 
pansion as  may  be  required  by  a  future  emer- 
gency. However,  to  limit  the  burden  on  the 
taxpayer,  this  subsidy  program  should  be 
held  to  the  minimum  level  that  will  satisfy 
national  defense  needs.  In  determining  this 
level,  full  account  must  be  taken  of  the  avail- 
ability of  vessels  from  friendly  nations  in  the 
event  of  an  emergency.  The  existence  of  the 
North  Adantic  Treaty  provides  a  framework 
within  which  joint  international  planning 
of  shipping  mobilization  may  proceed. 

The  entire  subject  of  Government  aid  to 
the  merchant  marine  is  now  under  active 
study  by  the  executive  agencies  concerned. 
Until  such  studies  are  completed,  we  should 
proceed  cautiously  with  existing  subsidy  pro- 
grams, and  should  avoid  commitments  for 
any  major  new  programs.  The  Budget  for 
195 1  has  been  developed  on  that  basis. 

Expenditure  increases  in  195 1  for  ship 
construction  and  for  operating  subsidies  will 
be  partially  oflset  by  reductions  in  other 
Maritime  Commission  activities.  The  mari- 
time training  program  is  being  reduced  in 
size,  and  consolidated  at  three  locations. 
Authority  for  ship  chartering,  scheduled  to 
expire  on  June  30,  1950,  does  not  now  appear 
to  be  required  beyond  that  date.  Expendi- 
tures will  also  be  lower  for  the  liquidation 
of  wartime  obligations. 

Navigation  aids  and  facilities, — ^The  safety 


92 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


Transportation  and  Communication 


[  Fiscal  years. 


Program  or  agency 
Promotion  of  merchant  marine: 

Maritime  Commission 

Inland  Waterways  Corporation: 

Present  programs 

Proposed  legislation 

Provision  of  navigation  aids  and  facilities: 

Panama  Canal 

Corps  of  Engineers: 

Present  programs 

St.  Lawrence  seaway  (proposed  legislation) 

Coast  Guard 

Interior 

Promotion  of  aviation: 

Civil  Aeronautics  Administration: 

Present  programs 

Alaska  airports  (proposed  legislation) 

Provision  of  highways: 
Bureau  of  Public  Roads: 

Present  programs 

Proposed  legislation 

Alaska  roads  (Interior) 

Forest  roads  and  trails  (Agriculture) 

Regulation  of  transportation 

Other  services  to  transportation: 

Reconstruction  Finance  Corporation 

Coast  and  Geodetic  Survey 

Alaska   Railroad 

Treasury  Department 

Postal  service  deficit: 

Present  programs 

Proposed  legislation 

Regulation  of  communication 

Alaska  Communication  System 


In  millions  ] 

Expenditures 


"New  obligational 
authority  for  ig^i 

ig4g  igso  igsi       Appropria- 


actual 

estimated 

estimated 

tions 

Other 

$122 

$161 

$222 

$135 

$70 

2 

I 

3 

3 

17 

20 

20 

^9 

160 

2X2 

243 
4 

242 
6 

132 

158 

181 

187 

C) 

I 

3 

143 

187 

I 

226 
4 

133 

70 

414 

490 

504 

3 

3 

524 

16 

23 

23 

16 

9 

23 

2 

15 

15 

16 

16 

—3 

2 

6 

10 

12 

12 

12 

33 

30 

41 

28 

Q) 

0 

{') 

I 

530 

569 

555 
—395 

555 
-395 

7 

7 

7 

7 

2 

3 

4 

6 

I,  622 


1,894 


1,682 


973 


673 


Total 

^Less  than  one-half  million  dollars. 

^  This  Budget  also  includes  591  million  dollars  of  appropriations  to  liquidate  prior  year  contract  author- 
izations. 


of  surface  and  air  operations  at  sea  requires 
the  navigational  aids,  rescue  stations,  and 
other  services  provided  by  the  Coast  Guard. 
Expenditures  for  these  activities  are  esti- 
mated to  increase  from  158  million  dollars 
in  1950  to  181  million  dollars  in  195 1.    This 


increase  is  largely  for  the  replacement  of 
over-age  aircraft,  and  for  more  adequate 
maintenance  of  existing  facilities. 

The  1 95 1  recommendations  do  not  pro- 
vide for  starting  construction  on  any  new 
river  and  harbor  projects  of  the  Corps  of 


93 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


Engineers.  Projects  already  under  way  will, 
however,  require  an  increase  in  expenditures 
from  212  million  dollars  in  the  fiscal  year 
1950  to  243  million  dollars  in  195 1,  and  a 
further  increase  in  1952. 

I  repeat  most  emphatically  my  previous 
recommendations  for  approval  of  the  Saint 
Lawrence  waterway  and  power  project. 
Authorization  of  the  seaway,  with  its  related 
power  facilities,  is  a  matter  of  urgency  for 
our  peacetime  industry  and  our  national 
security.  In  particular,  each  succeeding  year 
reduces  further  our  domestic  reserves  of  iron 
ore,  and  increases  correspondingly  the  im- 
portance of  the  seaway  as  a  means  of  eco- 
nomical access  to  the  proven  ore  deposits 
in  Quebec  and  Labrador. 

Aviation, — The  Federal  Government  pro- 
vides extensive  aid,  both  direct  and  indirect, 
to  civil  aviation.  This  assistance,  which  is 
consistent  with  our  traditional  policy  of  pro- 
moting new  forms  of  transportation,  has 
made  possible  a  spectacular  development  of 
air  transport  services,  especially  during  the 
past  decade.  Although  continued  aid  is 
required  for  the  present,  the  industry  should 
be  expected  to  become  increasingly  self- 
supporting  in  the  near  future. 

At  present,  direct  financial  assistance  to 
the  air  lines  is  provided  through  air-mail 
payments,  which  are  set  generally  at  levels 
adequate  to  cover  deficiencies  in  the  carriers' 
commercial  revenues.  Subsidy  is  thus 
merged  with  the  fair  compensation  for 
carrying  mail,  making  it  difEcult  to  evaluate 
the  cost  of  this  aid  in  relation  to  its  benefits. 
The  recent  rise  in  total  air-mail  payments — 
to  an  estimated  level  of  about  125  million 
dollars  in  1950 — has  made  it  increasingly 
important  that  the  subsidy  element  be  sepa- 
rately identified.  I  recommend,  therefore, 
the  immediate  enactment  of  legislation  to  au- 
thorize the  separation  of  subsidy  payments 
from  mail  compensation.  Such  subsidies 
should  be  paid  from  funds  appropriated  to 


the  Civil  Aeronautics  Board  specifically  for 
that  purpose. 

The  standard  by  which  subsidy  rates  are 
determined  under  existing  legislation  may 
itself  merit  review  in  the  light  of  the  indus- 
try's present  stage  of  development.  Setting 
subsidies  on  the  basis  of  the  carriers'  revenue 
needs  may  weaken  the  incentives  for  man- 
agerial economy,  thereby  increasing  the  dif- 
ficulty of  effective  regulation  by  the  Civil 
Aeronautics  Board.  While  a  considerable 
gain  in  efficiency  has  been  realized  by  the 
air  Hnes  since  the  end  of  the  war,  there  are 
undoubtedly  important  opportunities  for 
further  improvement.  The  1951  Budget 
will  permit  the  Civil  Aeronautics  Board  to 
conduct  more  intensive  investigations  of  air- 
line efficiency,  and  to  develop  operating  cost 
standards.  This  should  assist  the  Board  in 
shaping  its  subsidy  policies  so  as  to  retain, 
to  the  maximum  extent  possible,  the  normal 
business  incentives  for  economy. 

The  continued  growth  of  air  transporta- 
tion depends  upon  modernization  of  our  air- 
way facilities  to  permit  safe  and  regular 
flights  under  all  weather  conditions.  Ex- 
penditures for  the  development,  installation, 
and  operation  of  such  facilities  are  estimated 
at  136  million  dollars  in  the  fiscal  year  1951, 
39  million  dollars  above  1950.  Other  ac- 
tivities of  the  Civil  Aeronautics  Adminis- 
tration— including  safety  regulation  and 
airport  grants — ^will  require  expenditures  of 
93  million  dollars  in  195 1,  3  million  dollars 
higher  than  in  1950. 

Highways. — Major  development  of  our 
highway  system  is  required  to  overcome 
obsolescence  and  to  handle  safely  and  effi- 
ciently the  steadily  increasing  traflSc  loads. 
This  is  primarily  the  responsibility  of  States, 
counties,  and  municipalities.  The  Federal 
Government  must,  however,  continue  pro- 
viding financial  assistance  to  the  extent 
necessary  to  assure  a  basic  system  of  na- 
tional  roads,   built  to  uniformly   adequate 


94 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


Standards.  Under  existing  legislation,  the 
Bureau  of  Public  Roads  is  expected  to  spend 
504  million  dollars  for  highway  improve- 
ment in  1 95 1,  mainly  in  the  form  of  grants 
to  States.  Apart  from  the  emergency  re- 
lief programs  during  the  depression,  this  will 
be  the  highest  annual  level  of  Federal  high- 
way expenditures  to  date. 

All  of  the  Federal-aid  funds  thus  far  au- 
thorized have  been  apportioned  to  the  States, 
and  new  authorizing  legislation  is  therefore 
required  during  the  present  session  of  the 
Congress.  I  recommend  that  such  legisla- 
tion provide  an  annual  Federal-aid  authori- 
zation for  the  next  2  years  of  500  million 
dollars,  an  increase  of  50  million  dollars 
above  the  current  level.  Within  this  total, 
increased  emphasis  should  be  placed  upon 
the  Interstate  Highway  System,  a  limited 
network  of  routes  which  is  of  greatest  na- 
tional importance  to  peacetime  traffic  needs 
as  well  as  to  our  national  defense.  The 
recommended  shift  in  emphasis,  and  increase 
in  program  level,  should  permit  a  satisfac- 
tory rate  of  improvement  for  this  System. 

Postal  service, — ^Postal  rates  have  not  kept 
pace  with  increasing  costs  and,  as  a  result,  the 
postal  deficit  has  reached  excessive  propor- 
tions. Since  1939,  the  average  expense  per 
postal  transaction  has  increased  by  67  per- 
cent, owing  mainly  to  higher  wage  and 
transportation  costs;  in  contrast,  average 
revenue  has  increased  by  only  32  percent. 
On  the  basis  of  existing  postal  rates,  the 
deficit  for  195 1  is  estimated  at  555  million 
dollars.  Cases  now  pending  before  the  reg- 
ulatory commissions  may  result  in  higher 
payments  for  transportation,  and  hence  may 
correspondingly  increase  the  deficit. 

The  Postmaster  General  is  exploring  fully 
all  opportunities  for  reducing  the  cost  of  the 
postal  operation.  Modernization  of  the  mo- 
tor vehicle  service,  and  the  mechanization 
of  mail  handling,  are  among  the  items  re- 
ceiving particular  attention.    I  am  confident 


that  the  steps  now  being  taken  will  in  the 
long  run  help  to  assure  the  maximum  effi- 
ciency of  the  postal  operation.  However,  the 
potential  savings,  if  present  service  stand- 
ards are  maintained,  appear  small  in  rela- 
tion to  the  prospective  deficit;  they  do  not 
reduce  significantly  the  need  for  higher 
revenues  at  this  time. 

I  have  repeatedly  urged  the  Congress 
to  raise  postal  rates  so  as  to  bring  them 
into  line  with  postwar  costs.  The  need  for 
such  corrective  action  becomes  steadily  more 
urgent.  It  is  unsound  and  unnecessary  for 
the  postal  operation  to  continue  as  a  growing 
burden  on  the  general  taxpayer.  Instead,  the 
users  of  the  postal  service  should  as  a  group 
pay  the  full  cost  of  services  received.  This 
requires  that  the  postal  deficit  be  limited  to 
the  cost  of  air-line  subsidies.  Government 
mail,  franked  mail,  and  other  items  properly 
chargeable  to  the  general  revenues. 

Last  year,  the  Postmaster  General  recom- 
mended to  the  Congress  postal  rate  revisions 
designed  to  yield  additional  revenue  of 
about  250  million  dollars  per  year.  Subse- 
quent increases  in  employees'  pay  and  in 
transportation  costs  have  rendered  this 
amount  inadequate.  I  therefore  strongly 
urge  again  that  the  Congress  pass  legislation 
to  bring  the  postal  revenue  more  in  balance 
with  the  expenditures  of  the  service.  The 
only  alternative  to  increased  rates  or  a  con- 
tinued large  deficit  would  be  an  undesirable 
reduction  in  the  quality  of  services  provided. 
As  a  longer  range  solution  to  this  problem, 
there  should  be  sufficient  flexibility  in  the 
postal  rate  structure  to  permit  at  all  times  a 
proper  relationship  between  revenues  and  ex- 
penses. 

Regulation, — Through  regulation,  the 
Federal  Government  seeks  to  assure  the  ade- 
quacy, economy,  and  safety  of  transporta- 
tion and  communication  services.  Although 
the  expenditures  required  for  this  activity 
are  relatively  small,  this  is  one  of  the  more 


95 


[p]    Jan.  9 


Public  Papers  of  the  Presidents 


important  responsibilities  exercised  by  the 
Government  in  this  field.  The  195 1  Budget 
includes  moderate  increases  for  the  regula- 
tory commissions,  to  permit  them  to  reduce 
backlogs  of  pending  cases,  and  to  meet  new 
problems  more  prompdy. 

Finance,  Commerce,  and  Industry 

As  part  of  its  broad  program  for  balanced 
economic  development,  the  Federal  Gov- 
ernment provides  a  variety  of  general  finan- 
cial and  other  aids  to  promote  the  stability 
and  growth  of  independent  businesses. 
These  are  supplemented  by  regulatory  action 
designed  to  remove  monopolistic  barriers 
to  production  and  commerce.  In  addition, 
in  two  areas — exports  and  rents — it  is  neces- 
sary to  continue,  on  a  limited  basis,  wartime 
controls  now  in  effect.  Total  expenditures 
in  195 1  are  estimated  at  212  million  dol- 
lars, of  which  net  expenditures  for  loans  to 


business  will  account  for  about  three-fourths. 
Business  loans  and  guarantees, — In  the 
past  year,  the  Reconstruction  Finance  Cor- 
poration has  contributed  substantially  to  the 
financial  stability  of  independent  businesses, 
especially  small  business.  The  change  in 
economic  conditions  last  spring  resulted  in 
many  financing  needs  which  private  lenders 
failed  to  meet,  and  consequently  applications 
for  Reconstruction  Finance  Corporation 
business  loans  increased  rapidly.  During 
recent  months,  the  Corporation  has  been 
making  about  450  new  loans  per  month,  or 
nearly  twice  the  rate  of  a  year  ago.  With 
the  favorable  business  outlook  now  antici- 
pated, a  somewhat  lower  level  of  new  loan 
authorizations  is  estimated  in  1951,  but  net 
expenditures  are  expected  to  rise  above  1950 
because  of  disbursements  on  loans  author- 
ized this  year.  In  future  years,  repayments 
will  provide  increasing  offsets  to  disburse- 
ments on  new  loans. 


Finance,  Commerce,  and  Industry 


[  Fiscal  years.    In  millions  ] 


1949 
Program  or  agency  actual 

Business  loans  and  guarantees   (Reconstruction  Fi- 
nance Corporation,  present  programs  and  proposed 

legislation) $65 

Promotion  and  regulation  of  business: 
Department  of  Commerce: 

Promotion 23 

Export  control 3 

Antimonopoly  programs  (Federal  Trade  Commis- 
sion, Justice) 7 

Rent  control  (Housing  Expediter,  present  programs 

and  proposed  legislation) 22 

Other 7 

All  other: 
Preferred  stock  of  financial  institutions   (Recon- 
struction Finance  Corporation) — 14 

Control  of  private  finance 7 

Total 120 

*  Less  than  one-half  million  dollars. 


Expenditures 


1950 
estimated 


$153 


25 
3 


22 
7 


(0 


225 


1951 
estimated 


I155 


23 
2 


16 

7 

-6 

7 


"New  obligational 

authority  for  1951 

Appropria 

tions 


60 


Other 


$250 


$20 
3 

8 

16 
6 

7 


250 


96 


Harry  S.  Truman,  igp 


Jan.  9    [9] 


To  make  sure  that  this  program  will  meet 
the  needs  of  business  for  long-term  credit, 
I  am  renewing  the  recommendation  for  a 
substantial  increase  in  the  present  lo-year 
maximum  on  loan  maturities.  I  also  recom- 
mend an  addition  to  the  funds  available  for 
business  loans. 

Promotion  and  regulation  of  business, — 
Since  the  war  we  have  substantially  strength- 
ened our  antimonopoly  program,  but  con- 
tinued improvement  is  essential.  I  have 
asked  the  Secretary  of  Commerce,  in  con- 
sultation with  the  Attorney  General,  the 
Federal  Trade  Commission,  and  the  Council 
of  Economic  Advisers,  to  develop  recom- 
mendations for  increasing  the  effectiveness 
of  this  program.  A  major  aspect  of  this 
study  will  be  the  development  of  methods  to 
facilitate  establishment  of  small  businesses, 
to  promote  their  stability  and  growth,  and 
to  remove  obstacles  to  their  survival  as  inde- 
pendent competitive  enterprises. 

The  Budget  also  provides  additional  funds 
for  strengthening  the  antimonopoly  activi- 
ties of  the  Federal  Trade  Commission. 
Among  other  things,  this  will  permit  a  study 
of  trends  in  industrial  concentration  to  guide 
the  formulation  of  Federal  policy  and  to  aid 
in  prosecuting  specific  cases. 

As  the  record  levels  of  housing  construc- 
tion have  gradually  reduced  the  housing 
shortage,  rent  controls  have  been  removed 
in  many  communities.  This  trend  probably 
will  continue.  To  prevent  serious  hardship 
to  tenants  in  areas  where  shortages  remain 
critical,  I  am  recommending  a  i-year  exten- 
sion of  rent  control  authority  beyond  the 
present  expiration  date  of  June  30,  1950. 

Improvement  in  the  supply  situation  has 
permitted  removal  of  most  commodities 
from  export  control.  Export  licensing  of 
some  strategic  commodities,  however,  re- 
mains essential  because  of  the  uncertain  in- 
ternational situation. 


Labor 

The  programs  of  the  Federal  Government 
in  the  field  of  labor  are  designed  to  encourage 
increasingly  effective  use  of  our  major  pro- 
ductive resource — ^the  skill  of  the  American 
workingman — with  the  ultimate  objective  of 
assuring  higher  production  and  standards 
of  living.  To  this  end,  the  Government 
fosters  responsible  and  peaceful  labor  rela- 
tions based  on  collective  bargaining  by  offer- 
ing voluntary  mediation  services  and  provid- 
ing a  remedy  for  unfair  labor  practices.  It 
promotes  fair  labor  standards  for  wages, 
hours,  and  employment  conditions  to  prevent 
exploitation  and  unfair  competition  based 
on  substandard  conditions.  It  finances  a 
free  placement  service  to  aid  industry,  agri- 
culture, and  workers  and  insures  workers, 
mainly  through  a  Federal-State  system, 
against  total  loss  of  income  during  periods 
of  temporary  unemployment.  Finally,  it 
collects  and  publishes  information  on  wages, 
employment,  prices,  construction,  and  other 
subjects  in  order  that  business  and  economic 
planning  and  decisions  may  be  on  a  factual 
basis. 

The  importance  of  these  programs  is  by 
no  means  measured  by  the  total  expenditures 
of  243  million  dollars  in  195 1,  since  many 
of  the  activities  are  regulatory  in  nature  and 
require  only  minor  expenditures.  Of  total 
expenditures,  about  70  percent  consists  of 
grants  to  States  for  administration  of  the 
Federal-State  employment  service  and  un- 
employment compensation  system. 

Placement  and  unemployment  compensa- 
tion activities, — ^The  Federal  Government 
sets  standards  and  pays  all  administrative 
costs  for  State  operation  of  public  employ- 
ment oiEces  and  unemployment  insurance. 
Public  employment  oflSces  placed  applicants 
in  more  than  12,000,000  jobs  during  the  past 
fiscal  year.    Of  the  total  job  placements,  over 


41-355—65- 


-10 


97 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


7,000,000  were  on  farms.  Still  more  place- 
ments are  expected  in  1950  and  195 1. 

The  unemployment  compensation  work 
load  is  closely  related  to  general  economic 
conditions.  Last  year  the  Congress  recog- 
nized this  fact  by  appropriating  a  contin- 
gency fund  of  5  percent  of  the  basic  grants, 
to  be  used  if  the  number  of  claims  increased. 
It  now  appears  that  this  contingency  fund 
will  not  be  sufficient  to  pay  for  the  increase 
in  work  load  which  has  occurred.  I  shall, 
therefore,  request  a  supplemental  appropria- 
tion for  1950.  For  195 1,  the  Budget  recom- 
mendations for  the  basic  grants  assume  a 
somewhat  lower  average  level  of  unemploy- 
ment but  call  for  a  contingency  fund  of  10 
percent  to  obviate  delays  in  paying  valid 
claims,  should  the  volume  of  claims  suddenly 
rise. 

Mediation  and  regulation  of  labor  rela- 
tions,— In  my  State  of  the  Union  Message  I 


have  discussed  the  imperative  need  for  basic 
revision  of  the  Labor-Management  Relations 
Act  of  1947  to  incorporate  sound  provisions 
on  the  rights  and  responsibilities  of  labor 
and  management  in  relation  to  each  other 
and  to  the  general  public,  and  to  remove 
unworkable  administrative  provisions  in  the 
present  law.  This  Budget  allows  for  im- 
proving mediation  and  conciliation  activities 
by  providing  funds  to  permit  relatively  equal 
service  for  all  parts  of  the  country  and  for 
the  recently  expanded  organization  for  ad- 
justment of  employee  grievances  in  the  rail- 
way industry. 

Labor  standards  and  labor  training, — The 
1949  amendments  to  the  Fair  Labor  Stand- 
ards Act,  while  inadequate  in  many  respects, 
made  substantial  improvements  in  the  law 
by  raising  the  minimum  wage  to  75  cents 
an  hour  and  tightening  the  provision  against 
the  use  of  child  labor  in  production  for  inter- 


Labor 
[  Fiscal  years.    In  millions  ] 

Expenditures 


Program  or  agency 
Placement  and  unemployment  compensation  activi- 
ties: 
Department  of  Labor: 

Present  programs 

Proposed      legislation      (mainly      reinsurance 

grants) 

Railroad  Retirement  Board 

Federal  Security  Agency 

Mediation  and  regulation  of  labor  relations 

Labor  standards  and  training: 
Department  of  Labor: 

Present  programs 

Industrial    safety   program    (proposed    legisla- 
tion)   

Department  of  the  Interior  (mine  safety) 

Fair  Employment  Practice  Commission  (proposed 

legislation) 

Labor  information,  statistics,  and  general  adminis- 
tration   


1949 
actual 


*i5 

148 

12 


New  oMigational 
authority  for  19^1 
1 9  so  J  95 1        Appropria- 

estimated     estimated        tions  Other 


I137 


10 

37 
12 


I171 

12 
9 

13 


15 

6 

4 


$194 

13 
10 

13 


15 

6 

4 


Total . 


98 


193 


219 


243 


266 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


state  commerce.  I  am  recommending  in- 
creased funds  for  the  additional  inspection 
and  legal  staff  which  effective  enforcement 
will  require.  Such  enforcement  is  essential, 
not  only  to  protect  the  purchasing  power  of 
workers  who  need  it  most,  but  also  to  pro- 
tect law-abiding  employers  from  unfair 
competition. 

Two  legislative  proposals  respecting  em- 
ployment conditions,  and  one  on  training, 
should  be  enacted  promptly.  First,  a  per- 
manent Fair  Employment  Practice  Commis- 
sion should  be  established.  To  keep  minor- 
ity groups  economically  submerged  is  not 
only  unjust  and  discriminatory,  but  also 
prevents  the  best  use  of  available  manpower. 
Secondly,  I  am  renewing  my  recommenda- 
tion for  grants  to  States  to  assist  them  to 
encourage  industrial  safety.  The  Federal 
Government  and  the  States  spend  many  mil- 
lions of  dollars  each  year  to  rehabilitate  in- 
jured workers.  It  is  only  common  sense  to 
do  what  we  can  to  prevent  injuries  in  the 
first  place.  Finally,  I  recommend  that  a 
labor  extension  service  be  established  in  the 
Department  of  Labor  to  make  available  to 
wage  earners  educational  programs  designed 
to  promote  sound  labor-management  rela- 
tions. Such  a  program  would  require  about 
3  million  dollars  a  year  after  it  gets  into  op- 
eration but  would  not  have  substantial  effect 
on  the  195 1  Budget  because  of  the  time  re- 
quired to  get  under  way  at  the  local  level. 

Trust  accounts  and  unemployment  com- 
pensation legislation, — ^Last  year's  temporary 
but  sharp  rise  in  unemployment  provided  the 
first  real  test  of  the  Federal-State  unemploy- 
ment insurance  system  since  its  establishment 
15  years  ago.  The  system  was  of  great  help 
in  tiding  workers  over  temporary  unemploy- 
ment and  in  sustaining  markets  for  the  prod- 
ucts of  employed  workers.  During  the  last 
12  months,  a  total  of  1.7  billion  dollars  in 
benefits  was  paid  from  the  trust  fund.  At 
the  same  time,  major  shortcomings  of  the 


present  system  became  painfully  clear.  It 
does  not  cover  enough  workers,  and  does  not 
replace  enough  of  the  wages  lost  through 
unemployment.  I  shall  submit  proposals  for 
legislation  to  overcome  these  and  other  de- 
fects by  strengthening  the  present  Federal- 
State  system. 

At  present,  only  about  two-thirds  of  the 
workers  employed  in  nonagricultural  indus- 
tries are  insured  against  the  hazards  of  tem- 
porary unemployment.  Coverage  should  be 
extended  to  employees  of  small  establish- 
ments, of  industries  processing  agricultural 
products,  and  of  the  Federal  Government. 
This  would  raise  coverage  to  about  three- 
fourths  of  nonagricultural  workers.  Fur- 
thermore, legislation  should  include  mini- 
mum Federal  standards  for  eligibility  and 
disqualifications,  in  order  to  remove  some 
of  the  present  inequalities  in  administration 
among  the  States. 

Present  weekly  benefits  now  average  about 
one-third  of  previously  earned  weekly  wages. 
The  insurance  was  originally  intended  to 
replace  at  least  half  of  previous  earnings — 
the  minimum  needed  to  pay  for  food  and 
rent — but  benefits  in  many  States  have  not 
kept  up  with  price  rises.  In  order  to  assure 
more  nearly  adequate  benefits  throughout 
the  Nation,  the  Federal  law  should  provide 
minimum  standards  for  benefits  paid  from 
the  State  trust  accounts.  These  standards 
should  require  benefits  of  50  percent  of  pre- 
vious wages  up  to  30  dollars  a  week  for 
single  workers,  with  additional  amounts  for 
dependents  up  to  42  dollars  a  week  for  a 
worker  with  three  dependents.  The  legis- 
lation should  also  require  that  benefits  be 
available  to  eligible  claimants  for  at  least  26 
weeks. 

In  addition  to  these  changes  in  coverage 
and  benefit  standards,  I  shall  recommend 
amendments  to  the  financing  provisions  of 
present  legislation,  including  establishment 
of  a  reinsurance  system  to  provide  grants  to 


99 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


Unemployment  Trust  Fund 

{Trust  accounts) 

[  Fiscal  years.    In  millions  ] 

1949 
Item  actual 

Receipts: 

Deposits  by  States  and  railroad  unemployment  taxes $994 

Interest 180 

Payments:  State  and  railroad  unemployment  withdrawals — i,  327 

Net   accumulation — 153 


1950  1951 

estimated        estimated 


$1,018     $1,193 

162       165 

—2,034    —1,570 


-854 


States  whose  reserves  for  benefits  become 
temporarily  low,  despite  reasonable  measures 
to  maintain  adequate  funds.  Although  most 
States  have  sufficient  reserves  to  pay  higher 
benefits  without  increasing  taxes,  one  or  two 
States  may  need  assistance  by  next  autumn 
or  shortly  thereafter. 

The  proposed  legislation  will  affect  chiefly 
the  trust  fund  rather  than  the  appropriations 
for  administration.  For  both  the  trust  fund 
and  the  appropriations,  the  effect  in  the  fiscal 
year  1951  will  be  slight  because  time  will  be 
required  for  the  State  legislatures  to  revise 
their  laws  to  conform  with  new  standards 
established  by  the  Congress.  Benefits  for 
Federal  workers  will  represent  the  principal 
continuing  budgetary  cost  of  my  recommen- 
dations. (The  estimated  expenditures  for 
these  benefits  in  the  fiscal  year  195 1  are 
shown  under  general  government.)  Esti- 
mates for  proposed  reinsurance  appropria- 
tions are  also  included  in  the  Budget.  Ex- 
penditures from  these  appropriations  will  be 
necessary  only  if  State  reserves  become  in- 
adequate to  provide  for  temporarily  high 
numbers  of  insured  unemployed. 

General  Government 

The  expenditures  for  general  government 
cover  legislative,  judicial,  and  financial 
management  activities,  and  also  many 
Government-wide  administrative  services 
and  programs  such  as  property  and  records 


management,  public  buildings  construction 
and  maintenance,  and  the  operations  of  the 
Civil  Service  Commission.  The  total  ex- 
penditures for  these  programs  for  the  fiscal 
year  1951  are  estimated  at  1.3  billion  dollars 
compared  to  1.2  billion  for  the  current  fiscal 
year.  The  increase  is  primarily  for  strength- 
ening further  the  system  of  tax  collection,  for 
the  Government  payment  to  the  employees' 
retirement  system,  and  for  public  building 
sites  and  plans. 

Internal  revenue  operations, — ^Efficient  op- 
eration of  the  Bureau  of  Internal  Revenue, 
the  Federal  Government's  primary  tax  col- 
lection agency,  is  essential  to  protect  the  Fed- 
eral revenue  and  to  assure  fair  treatment  to 
taxpayers.  Studies  of  the  organizational 
structure  and  administrative  procedures  of 
this  agency  have  been  under  way  for  some 
time  and  have  already  resulted  in  many  im- 
provements, including  the  mechanization  of 
some  operations.  These  have  enabled  the 
Bureau  to  strengthen  and  extend  its  audit 
and  enforcement  activities,  thereby  collect- 
ing additional  taxes,  not  only  directly,  but 
also  by  stimulating  a  greater  degree  of  vol- 
untary compliance.  Further  improvements 
are  in  prospect.  The  1951  appropriation 
provides  for  increased  funds  for  these 
purposes. 

Property  management, — Under  mandate 
of  the  Federal  Property  and  Administrative 
Services  Act  of  1949,  the  General  Services 
Administration  was  established  to  consoli- 


100 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


date  a  number  of  Government-wide  activities 
concerned  with  the  procurement,  mainte- 
nance, and  disposal  of  Federal  property. 
This  was  in  accord  with  a  major  recommen- 
dation of  the  Commission  on  Organization 
of  the  Executive  Branch  of  the  Government. 
The  General  Services  Administration  is  cur- 
rently undertaking  to  establish  records  stor- 
age centers  and  is  emphasizing  the  expansion 
of  inspection  services  and  traffic  manage- 
ment,   determination    of    purchasing    re- 


quirements, and  controls  to  insure  proper 
utilization  of  Government  property. 

Civilian  employees*  retirement  system. — 
Federal  employees  covered  by  the  civil  serv- 
ice retirement  and  disability  system  are  re- 
quired by  law  to  contribute  6  percent  of  their 
salaries  toward  future  benefits;  the  Govern- 
ment contributes  the  remaining  cost  of  bene- 
fits provided  under  the  system.  The 
expenditures  of  333  million  dollars  estimated 
for  195 1  represent  the  Government  payment 


General  Government 


[  Fiscal  years. 


Program  or  agency 

Legislative  functions 

Judicial  functions 

Executive  direction  and  management 

Federal  financial  management: 

Bureau  of  Internal  Revenue  (Treasury) 

Customs  collection,  debt  management,  and  other 
(mainly  Treasury) 

General  Accounting  OflSce 

Other  central  services: 

Property  management   (mainly  General  Services 
Administration) 

Civil  Service  Commission 

Legal  services  (Justice) 

Government  Printing  Office 

Special  fund  for  management  improvement 

Government   payment   toward   civilian   employees* 

general  retirement  system 

Interest  on  refunds  of  receipts 

Public  buildings  construction  (General  Services  Ad- 
ministration   

Weather  Bureau  (Commerce) 

Cemeterial  program    (Army  and  American  Battle 

Monuments  Commission) 

Immigration  control  (Justice) 

Other: 

Present  programs 

Unemployment  compensation  payments  to  Federal 
workers  (proposed  legislation) 

Civil  rights  program  (proposed  legislation) 


In  millions  ] 

Expenditures 


1949 
actual 

$34 

19 

7 

208 


1950 
estimated 

$43 

27 

8 

230 


135 

35 

136 
36 

169 

16 

6 

139 

17 

8 

5 

9 

I 

224 
87 

301 
93 

3 

24 

22 
24 

58 
30 

30 
32 

68 


1951 
estimated 

$50 
31 
12 

253 

134 
37 


no 

17 

9 

II 


Islew  obligational 
authority  for  1951 

Appropria 
tions 

139 

24 

7 


333 
100 

53 
26 

21 

32 

24 

13 
I 


253 

133 

37 


99 

17 

9 

19 


333 
100 

28 
26 

13 
32 

47 

14 
I 


Other 


$3 


Total 1,170  1,223  1,267        *i,23i  3 

^  This  Budget  also  includes  41  million  dollars  of  appropriations  to  liquidate  prior  year  contract  author- 


lOI 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 


necessary  to  enable  the  fund  to  cover  its 
currently  accruing  obligations. 

Construction  of  public  buildings. — ^0£  esti- 
mated expenditures  of  53  million  dollars  in 
1 95 1  for  construction  of  public  buildings, 
more  than  half  is  for  acquiring  sites  and 
drawing  plans  for  future  construction  in  ac- 
cordance with  the  Public  Buildings  Act  of 
1949.  Expenditures  for  actual  construction 
will  be  limited  to  projects  already  under  way. 

Operation  of  the  Weather  Bureau, — 
Modest  increases  are  requested  to  meet  the 
increased  demand  for  the  services  of  the 
Weather  Bureau.  These  include  the  require- 
ments for  general  weather  service,  aviation 
forecasts,  and  assisting  in  the  protection  of 
our  forests  from  fire  hazards.  Increases  in 
Adantic  weather  patrol  observations  and  in 
forecasting  and  briefing  services  to  pilots 
on  international  flights  are  to  meet  commit- 
ments under  the  International  Civil  Avia- 
tion Organization. 

Government  of  Guam,  Samoa,  and  the 
trust  territory  of  the  Pacific  islands. — It  is 
the  announced  aim  of  this  Government  to 
accord  civil  government  to  the  inhabitants 
of  its  non-self-governing  Pacific  Territories — 
Guam  and  American  Samoa — ^which  have 
been  under  American  rule  for  half  a  cen- 
tury, and  the  trust  territory  of  the  Pacific 
islands  which  we  administer  under  a 
United  Nations  trusteeship  agreement.  As  a 
partial  step  in  this  direction  I  have  trans- 
ferred administrative  responsibility  for 
Guam  to  the  Secretary  of  the  Interior  and 
have  directed  that  arrangements  be  made  for 
a  similar  transfer  on  July  i,  1951,  with  respect 
to  American  Samoa  and  the  trust  territory. 
This  Budget  includes  2  million  dollars 
for  Guam  as  part  of  a  4  million  dollar 
appropriation  recommended  for  admin- 
istration of  Territories  and  possessions  for 
the  fiscal  year  1951.  I  urge  that  the  Con- 
gress enact  the  proposed  organic  acts  now  be- 
fore it,  providing  for  the  civil  government 


of  Guam  and  American  Samoa,  and  similar 
legislation  for  the  trust  territory  of  the  Pa- 
cific islands. 

Development  of  the  National  Capital. — 
I  renew  my  request  that  the  National  Capital 
Park  and  Planning  Commission  be  estab- 
lished on  a  stronger  statutory  basis.  This 
would  enable  the  Commission  to  fulfill  more 
effectively  its  obligations  to  plan  the  orderly, 
coordinated  development  of  the  District  of 
Columbia  and  nearby  areas  in  Maryland  and 
Virginia. 

Government  Services  Corporation. — Sev- 
eral organizations  not  within  the  normal 
governmental  framework  now  provide,  in 
Government  buildings  and  on  Government 
property,  cafeteria  and  recreational  services 
for  Federal  employees.  I  recommend  that 
the  Congress  pass  legislation  now  before  it 
to  create  a  self-supporting  Government  cor- 
poration to  carry  out  these  essentially  gov- 
ernmental responsibilities. 

Federal  employees*  unemployment  com- 
pensation.— ^The  proposed  broadening  of  the 
coverage  of  the  unemployment  compensa- 
tion program,  recommended  elsewhere  in 
this  Message,  requires  a  Government  pay- 
ment to  extend  coverage  to  Federal  em- 
ployees. This  Budget  includes  13.5  million 
dollars  for  an  appropriation  to  cover  benefit 
payments  in  the  second  half  of  fiscal  year 
1 95 1,  when  it  is  anticipated  the  program  will 
be  in  operation. 

Civil  rights  program. — This  Budget  in- 
cludes funds  to  expand  civil  rights  enforce- 
ment activities  of  the  Department  of  Jus- 
tice under  present  laws.  In  addition  to 
the  amount  provided  for  establishing  a  Fair 
Employment  Practice  Commission,  there  is 
included  800  thousand  dollars  as  the  amount 
needed  under  proposed  legislation  to  estab- 
lish a  permanent  Commission  on  Civil 
Rights,  which  would  continuously  review 
our  practices  and  policies  in  this  field,  and 
to  provide  for  an  additional  Assistant  At- 


102 


Harry  S.  Truman,  ig^o 


Jan.  9    [9] 


Treasury  Department 


Interest  ON  the  Public  Debt 

[  Fiscal  years.    In  millions  ] 

Appropria- 
tions for 

Expenditures 

I9SI  {per- 

1949 

1950             1951 

manent 

Agency 

actual 

estimated     estimated 

indefinite) 

$5, 352 

$5, 725         $5,  625 

$5,  625 

torney  General  to  supervise  a  needed  civil 
rights  division  in  the  Department  of  Justice. 

Interest  on  the  Public  Debt 

Interest  on  the  public  debt  is  a  fixed  obli- 
gation of  the  Government,  determined  by 
the  amount  of  Federal  securities  outstanding 
and  their  interest  rates.  Payments  are  fi- 
nanced by  permanent  indefinite  appropria- 
tions which  do  not  require  annual  congres- 
sional  action. 

Interest  payments  of  5.6  billion  dollars 
estimated  for  1951  are  lower  than  those  in 
1950,  because  a  shift  in  reporting  methods 
caused  a  nonrecurring  addition  of  over  200 
million  dollars  in  1950.  Under  the  new 
method,  effective  in  the  fiscal  year  1950,  all 
interest  payments  are  now  reported  as  they 
become  payable  rather  than  when  they  are 
actually  paid.  As  a  result  of  the  transition, 
the  1950  total  includes  interest  for  prior 
years  that  was  payable  but  had  not  yet  been 
presented  for  payment  at  the  beginning  of 
the  fiscal  year  1950.  This  change  does  not 
significantly  affect  the  reporting  of  interest 
payments  in  195 1  and  later  years. 

Apart  from  this  nonrecurring  item,  total 
interest  payments  will  continue  to  rise  in  the 
fiscal  year  1951.  Each  year  more  of  the 
savings  bonds  sold  during  the  war  reach  the 
stage  where  interest  accrues  at  higher  rates. 
Moreover,  continuing  accumulations  of  Gov- 
ernment trust  funds  will  cause  further  in- 
creases in  special  issues  to  such  funds  of 
obligations  bearing  rates  of  interest  higher 
than  the  average  on  the  entire  public  debt. 


Finally,  the  Budget  deficits  this  year  and 
next  will  add  to  the  total  volume  of  interest- 
bearing  debt.  Savings  in  refunding  opera- 
tions, however,  will  offset  some  of  this  in- 
crease in  interest  cost. 

Interest  payments  on  the  Federal  debt  are 
widely  distributed,  and  represent  a  partic- 
ularly important  source  of  income  to  certain 
institutions  and  groups.  Almost  2  billion 
dollars  of  interest  in  the  fiscal  year  1951  is 
expected  to  go  to  individuals  and  unincor- 
porated businesses.  About  i  billion  dollars 
will  be  paid  to  commercial  banks  and  almost 
1.5  billion  to  insurance  companies,  mutual 
savings  banks,  and  other  private  investors. 
Another  i  billion  dollars  will  go  to  Govern- 
ment retirement  funds,  social  security  funds, 
and  various  other  Government  trust  funds 
to  build  up  reserves  out  of  which  future 
benefits  will  be  paid.  Over  250  million 
dollars  of  interest  in  195 1  will  be  paid  to 
the  Federal  Reserve  banks;  more  than  half 
of  such  payments  will  be  returned  to  the 
Treasury  and  deposited  into  miscellaneous 
receipts.  The  remainder  will  be  used  to 
defray  most  of  the  operating  expenses  of  the 
Federal  Reserve  System,  to  pay  dividends  to 
member  banks,  and  to  add  to  surplus. 

PROPOSED  LEGISLATION— A 
SUMMARY 

The  following  table  shows  estimated  ex- 
penditures, appropriations,  and  other  au- 
thorizations included  in  the  Budget  for 
programs  under  proposed  legislation.  The 
second  table  shows  the  effect  of  proposed 


103 


[9]    Jan.  9 


Public  Papers  of  the  Presidents 

Proposed  Legislation 

{Summary  of  amounts  included  in  the  Budget) 

[  Fiscal  years.    In  millions  ] 


Function  and  program 

EXTENSION   OF    EXISTING   LEGISLATION 

International  affairs  and  finance: 

Extension  of  European  recovery  program  and  other  foreign  aid. 

Extension  of  mutual  defense  assistance 


Estimated 

expenditures, 

1951 


$1, 700.  0 


Anticipated  supplemental 
appropriations  and  other 
authorizations 


Inter-American  highways 

National  defense:  Selective  service  program 

Housing  and  community  development: 

Mortgage  purchases 

Loans  to  pref abricators 

Extension  and  modification  of  loan  insurance 

Agriculture  and  agricultural  resources:  Commodity  Credit  Corpora- 
tion   

Transportation  and  communication: 

Federal-aid  postvj^ar  highway  program 

Forest  highways 

Finance,  commerce,  and  industry: 

Business  loans  and  guarantees 

Extension  of  rent  control 


10.  o 
15.0 


Expenditures  and  appropriations   (net) 2, 059.  o 

Contract  authorizations 

Public  debt  authorizations 

NEW   LEGISLATION  === 

International  affairs  and  finance: 

Technical  assistance  to  economically  underdeveloped  areas  (Point 

IV) 25.  0 

Assistance  to  the  Republic  of  Korea 110.  o 

Contributions  to  International  Trade  Organization  and  other  in- 
ternational organizations 2. 5 

Relief  of  Palestine  refugees 20.  o 

Expanded  displaced  persons  program 2.  4 

Rama  Road,  Nicaragua 


National  defense:  Military  functions  (including  public  works) . 

Social  welfare,  health,  and  security: 

Expansion  of  public  assistance  programs 

Expansion  of  vocational  rehabilitation  program 

Aid  to  medical  education 

Increased  aid  to  local  public  health  services 

Increased  grants  to  States  for  maternal  and  child  welfare .  .  . . 
Health  services  for  school  children 


70.0 

200. 3 

4.3 
30.0 

4.5 

6.9 

25.  0 


1950 


3.9 

125.0 

($500. 0) 

17.8 

(25.0) 

-12.7 

(2,  000.  o) 


(2, 525. 0) 


65.0 


27.0 


I95I 


$3, 100.  o 

647.5 

[500. 0] 

[8.0] 

4.2 

(250.  o) 


[500.  o] 
[20.0] 

(250. 0) 

16.0 

3,  767.  7 
[1,028.0] 
(500.  0) 


35-0 
115.  o 

2.5 


2.6 
[8.0] 

131.  7 
[240. 0] 

250.3 

4-3 

45.0 

5.0 

9.5 
35.0 


Note. — [     ]  indicate  contract  authorizations.     (     )  indicate  public  debt  authorizations. 


104 


Harry  S.  Truman,  ig^o 

Proposed  Legislation — Continued 
[  Fiscal  years.    In  millions  ] 


Jan.  9    [9] 


Function  and  program 
New  Legislation — Continued 
Housing  and  community  development: 

Cooperative  housing  for  middle-income  families 

Loans  to  other  cooperatives 

Home  Loan  Bank  Board  stand-by  borrowing  authority 

Disaster  relief 

Education  and  general  research: 

General  aid  for  operating  expenses,  elementary  and  secondary 
schools 

Surveys  and  emergency  construction,  elementary  and  secondary 
schools 

Education  of  children  on  Federal  properties  and  in  emergency 
areas 

General  assistance  to  college  students 

National  Science  Foundation 

Agriculture  and  agricultural  resources:  Administration  of  Commodity 

Exchange  Act 

Natural  resources: 

Research  in  utilization  of  salt  water 

Baltimore- Washington  Parkway 

Transportation  and  communication: 

Inland  Waterways  Corporation 

St.  Lawrence  seaway  and  power  project 

Construction  of  public  airports,  Territory  of  Alaska 

Forest  highways,  Alaska 


Estimated 

expenditures, 

1951 


Anticipated  supplemental 
appropriations  and  other 
authorizations 


1950 


Postal  rate  increase  (increased  revenue) 

Labor: 

Expanded  unemployment  insurance:  Administration  and  reinsur- 
ance   

Industrial  safety  program 

Fair  Employment  Practice  Commission 

General  government: 

Strengthening  Federal  civil  rights  program 

Unemployment  compensation  payments  to  Federal  workers 


$50.0 
30.0 

5.0 


290.2 

22.  2 

7.0 
0.9 
0.4 

0.7 

0.5 
2.0 

3.0 
4.0 
3.5 
2.9 
-395.  0 


12.4 
6.0 
0.6 

0.7 
13.4 

561.3 


($1,750.0) 


4.5 


96.5 


Expenditures  and  appropriations  (net) 

Contract  authorizations 

Public  debt  authorizations (i,  750.  0) 

*  Estimated  additional  receipts  of  60  million  dollars  in  1951. 

Note. — [     ]   indicate  contract  authorizations.     (     )  indicate  public  debt  authorizations. 


1951 


$35.0 
(25.  0) 


5.0 

300.2 

45.2 

7.0 
I.  0 
0.5 

0.8 

0.5 
3.0 

3.0 
6.0 

2.9 

[4.4] 
-395.  o 


12.5 
6.0 
0.7 


0.8 
13.5 

684.5 

[252.  4] 

(25.  0) 


105 


[9]    Jan.  9  Public  Papers  of  the  Presidents 

Proposed  Legislation  Affecting  Trust  Funds 
[  In  millions  ] 

Function  and  program  estimated 

social  welfare,  health,  and  security 
Extend  and  improve  old-age  and  survivors  insurance: 

Additional  receipts Ii^  200.  0 

Additional  disbursements i^  43,3.  0 

Net  accumulation  in  reserve — 233.  0 

Medical  care  insurance: 

Receipts 250.  0 

Disbursements  for  initial  expenses 35.0 

Net  accumulation  in  reserve, 215.  0 


legislation  upon  the  Government  trust  funds. 

Many  of  the  programs  listed  under  pro- 
posed legislation  are  actually  continuations 
of  programs  already  in  existence  but  for 
which  new  authorizations  are  required  to 
permit  their  continuance  in  1951.  These 
items  are  set  forth  separately  in  the  first  part 
of  the  table. 

The  Budget  also  contains  a  general  reserve 
for  contingencies.  It  is  designed  as  a  mini- 
mum provision  for  activities  not  now 
definitely  foreseen,  but  on  which  action  may 
be  required  before  the  end  of  the  fiscal 
year. 

The  Budget  for  the  fiscal  year  195 1  reflects 
the  great  strength  and  the  extensive  respon- 
sibilities of  this  country.  It  represents  much 
more  than  a  collection  of  facts  and  figures — 
it  represents  the  program  which  I  am  recom- 
mending for  our  Government  in  the  months 
ahead.  It  will  influence  the  course  of  events 
for  years  beyond  195 1,  and  the  success  with 
which  we  push  ahead  toward  enduring 
peace,  continuing  economic  growth,  and  a 
steady  strengthening  of  our  democratic 
society. 

In  preparing  this  Budget,  I  have  earnestly 
applied  the  fundamental  principles  which,  in 
the  present  circumstances,  should  guide  us 


in  the  conduct  of  our  affairs.  It  is  an  honest 
Budget,  which  meets  the  realities  which  face 
us.  It  provides  for  essential  activities  on  a 
minimum  basis  and  no  more,  despite  the 
great  pressures  which  exist  on  every  side 
for  larger  expenditures  on  specific  programs. 
It  meets  the  obligation  of  our  Government 
to  nourish  and  support  the  economic  and 
social  health  of  our  Nation.  It  not  only 
provides  for  substantial  progress  in  195 1 
toward  our  goal  of  budgetary  balance  but 
also  lays  the  basis  for  further  improvement 
in  subsequent  years  consistent  with  the  wel- 
fare of  the  country. 

We  are  still  a  young  and  growing  Nation 
with  a  great  reserve  of  human  skills  and 
productive  resources.  We  have  made  and 
shall  make  more  progress  toward  a  less 
threatening  world.  Our  strength  is  not  be- 
ing impaired  by  our  present  great  responsi- 
bilities and  the  temporary  deficits  required  to 
meet  them.  Given  wise  policies,  which  meet 
the  broadest  tests  of  national  welfare,  we  can 
look  forward  to  the  future  with  confidence. 

Harry  S.  Truman. 

note:  The  message  was  transmitted  to  the  Senate 
and  to  the  House  of  Representatives  on  January  9. 

The  message  and  the  budget  document  (1,198 
pp.)  are  published  in  House  Document  405  (8ist 
Cong.,  2d  sess.). 


106 


Harry  S.  Truman,  igp 


Jan.  12    [ii] 


10    Letter  to  the  U.S.  Representative  on  the  United  Nations 
Commission  on  the  Status  of  Women.    January  lo,  1950 


My  dear  Judge  Kenyan: 

I  want  to  express  my  appreciation  of  your 
service  as  United  States  Representative  on 
the  Commission  on  the  Status  of  Women  of 
the  Economic  and  Social  Council  of  the 
United  Nations  during  the  past  three  years. 
I  have  been  especially  interested  in  the  work 
of  this  Commission,  for  it  is  my  belief,  as  I 
know  it  is  yours,  that  the  sound  conduct  of 
public  business  requires  the  full  participa- 
tion of  all  citizens,  men  and  women  alike. 
The  Commission  has  benefited  by  your  prac- 
tical experience  as  a  member  of  the  Bar, 
especially  in  these  first  years  of  organization 
and  planning.  Your  earlier  service  as  an 
expert  member  of  the  League  of  Nations' 
Committee  on  the  Legal  Status  of  Women 
and  in  regard  to  the  nationality  problems  of 
married  women  have  also  been  an  asset  in 
selecting  fields  for  action  and  evaluating 
results. 

I  am  well  aware  that  you  have  carried  the 


work  of  this  Commission  at  a  great  sacrifice 
to  your  heavy  law  practice.  I  know,  too, 
that  you  have  given  generously  of  your  time 
to  counsel  with  other  members  of  the  Com- 
mission and  with  the  staS  of  the  United 
Nations  concerned  with  the  Commission's 
objectives,  as  well  as  to  interpret  its  progress 
to  organizations  and  individuals  throughout 
the  United  States.  I  hope  that  even  though 
your  term  of  office  has  expired,  we  may  call 
on  you  from  time  to  time  for  consultation  on 
the  numerous  technical  problems  which 
arise  in  working  to  achieve  equality  for 
women  in  all  countries. 

Very  sincerely  yours, 

Harry  S.  Truman. 

[Honorable  Dorothy  Kenyon,  50  Broadway,  New 
York  4,  N.Y.] 

note:  Judge  Kenyon  was  the  first  U.S.  Representa- 
tive on  the  United  Nations  Conimission  on  the 
Status  of  Women.  Appointed  on  November  7, 1946, 
her  term  expired  on  December  31,  1949. 


1 1     The  President's  News  Conference  of 
January  12,  1950 


THE  PRESIDENT.  I  have  uo  announcements 
today.  I  will  try  to  answer  questions,  i£ 
anybody  has  any  on  his  mind. 

[i.]  Q.  Mr.  President,  have  you  reached 
any  new  decision  on  whether  there  is  an 
emergency  in  coal  that  would  warrant  use  of 
the  Taft-Hardey  Act.? 

THE  PRESIDENT.  There  is  no  national  emer- 
gency in  coal  at  the  present  minute. 

[2.]  Q.  When  is  your  tax  program  going 
up? 

THE  PRESIDENT.  Just  as  soou  as  we  can  get 
it  ready. 

Q.  Have  you  got  anything  you  can  tell  us 
about  now.f* 


THE  PRESIDENT.  No.  It  will  all  be  con- 
tained in  the  message,  and  it  will  be  very 
fairly  stated. 

Q.  Will  it  go  up  next  week,  Mr.  Presi- 
dent.? 

THE  PRESIDENT.   I  hopC  SO.^ 

[3.]  Q.  Mr.  President,  the  Attorney 
General  is  calling  a  conference  on  law  en- 
forcement, and  there  has  been  some  talk 
about  getting  an  antiracketeering  law  against 
these  "tygoons."  Do  you  have  any  comment 
to  make  on  that,  sir? 

THE  PRESIDENT.  No  commeut.  I  imagine 
that  is  what  he  has  called  the  conference  for, 

^  See  Item  18. 


107 


[ii]    Jan.  12 


Public  Papers  of  the  Presidents 


to  come  to  a  conclusion  on  it. 

[4.]  Q.  Mr.  President,  Senator  Taft  said 
in  the  Senate  yesterday  that  Formosa  is  one 
place  where,  quote:  "With  a  small  amount 
of  aid  and  at  very  small  cost,  we  could 
prevent  the  spread  of  communism."^  Do 
you  agree  with  that? 

THE  PRESIDENT.  Senator  Taft  is  entitled  to 
his  own  opinion.  I  didn't  know  he  was  a 
military  expert,  though.     [Laughter] 

[5.]  Q.  Mr.  President,  do  you  plan  to 
see  the  Governor  of  Puerto  Rico  when  he 
comes  here  in  the  near  future? 

THE  PRESIDENT.  Whenever  the  Governor 
of  Puerto  Rico  is  here  and  wants  to  see  me, 
the  door  is  always  open  to  him,  or  the 
Governor  of  any  other  one  of  the  Territories. 
I  saw  one  this  morning. 

[6.]  Q.  Mr.  President,  do  you  plan  to 
change  the  Minister  to  Ireland  ? 

THE  PRESIDENT.  Hadn't  heard  anything 
about  it.  I  will  certainly  have  to  make  the 
appointment  if  there  is  a  change. 

[7.]  Q.  Mr.  President,  was  that  the  Gov- 
ernor of  Alaska  that  was  here? 

THE  PRESIDENT.  The  Govemor  of  Hawaii. 
The  Alaskan  Governor  was  here  last  week, 
I  think. 

[8.]  Q.  Mr.  President,  did  Mr.  Aldrich 
make  any  suggestions  for  implementing 
point  4? 

THE  PRESIDENT.  We  had  a  discussion  on 
the  subject,  and  there  will  be  an  announce- 
ment on  it  some  time  in  the  near  future.^ 

[9.]  Q.  Mr.  President,  do  you  expect  to 
have  an  announcement  soon  on  the  new 
member  of  the  National  Labor  Relations 
Board? 


*  The  remarks  of  Senator  Robert  A.  Taft  are  pub- 
lished in  the  Congressional  Record  (vol.  96,  p.  298). 

^  Winthrop  Aldrich,  chairman  of  the  board  of  the 
Chase  National  Bank  of  New  York.  In  the  spring 
of  1950  Mr.  Aldrich,  during  a  trip  abroad,  made  a 
survey  of  economic  conditions  in  a  number  of  Euro- 
pean countries.  On  July  6,  1950,  he  reported  his 
findings  in  a  meeting  with  President  Truman. 


THE  PRESIDENT.   YeS,  I  hopC  tO. 

Q.  This  week? 

THE  PRESIDENT.  I  Can't  auswer  it  definitely. 

[10.]  Q.  Mr.  President,  have  you  no- 
ticed the  close  parallel  between  your  budget 
and  the  CED  budget 

Q.  I  didn't  get  that,  Mr.  President. 

THE  PRESIDENT.  Say  that  again.  I  didn't 
hear  it,  either. 

Q.  Have  you  noticed  the  close  parallel  be- 
tween your  budget  and  the  CED  budget, 
which  on  the  surface  looks  like  it's  a  big  one 
but  actually  figures  out  very  close  to  your 
budget? 

THE  PRESIDENT.  I  haveu't  giveu  any  study 
to  any  budget  but  my  own,  and  it's  all  I  can 
do  to  take  care  of  that.  I  haven't  seen  the 
CED  budget.^ 

[11.]  Q.  Mr.  President,  is  there  any  new 
policy  in  the  making  on  Spain?  I  notice 
Chairman  Kee  ^  made  a  speech 

THE  PRESIDENT.  I  havc  uo  commeut  on 
that. 

[12.]  Q.  Mr.  President,  would  you  give 
us  your  reaction  to  Mr.  Boyle's  ^  report  on 
Ohio? 

THE  PRESIDENT.  Very  satisfactory  report 
from  the  Democratic  standpoint. 

Q.  Did  he  report,  Mr.  President,  that  he 
thinks  the  Democrats  can  beat  Taft? 

THE  PRESIDENT.  He  reported  to  me  he 
thought  the  Democrats  could  win  in  Ohio. 
No  personalities  were  gone  into.  [Laugh- 
ter] 

Q.  Do  you  think  he  might  have  meant 
Senator  Taft?     [More  laughter] 

*The  Committee  for  Economic  Development,  a 
private  nonprofit  organization,  released  a  report  on 
January  7,  entitled  "Tax  Expenditure  Policy  for 
1950,"  which  called  for  a  reduction  in  taxes  and 
Federal  spending  in  fiscal  year  195 1  (Committee  for 
Economic  Development,  1950,  54  pp.). 

^  Representative  John  Kee  of  West  Virginia.  His 
remarks  on  Spain  are  published  in  the  Congressional 
Record  (vol.  96,  p.  240). 

^  William  M.  Boyle,  Jr.,  Chairman  of  the  Demo- 
cratic National  Committee. 


108 


Harry  S.  Truman,  ig^o 


Jan.  12    [12] 


[13.]  Q.  Mr.  President,  the  House  Rules 
Committee  is  taking  up  FEPC  tomorrow. 
Is  that  being  done  at  your  request? 

THE  PRESIDENT.  The  House  Rules  Com- 
mittee, of  course,  is  running  its  own  busi- 
ness. The  chairman  of  the  Rules  Com- 
mittee was  in  to  see  me  this  morning,  and 
told  me  that  they  were  going  to  take  it  up, 
and  I  was  very  highly  appreciative  that  they 
are. 

Q.  Thank  you. 

Q.  Do  you  think  you  can  pass  it  this  ses- 
sion, sir? 

THE  PRESIDENT.  Well,  you  will  have  to  ask 
the  leaders  in  the  House.  I  can't  answer  that 
question. 

Q.  Not  the  House;  it's  the  Senate. 

THE  PRESIDENT.  Well,  the  Senate,  then. 

[14.]  Q.  Mr.  President,  going  back  to 
Mr.  Brandt's  '^  question  on  Kee's  speech,  do 
you  know  whether  that  had  the  approval  of 
the  State  Department,  sir? 

THE  PRESIDENT.  I  think  the  best  way  to  find 
out  is  to  ask  the  Secretary  of  State.  I  think 
he  has  a  press  conference  each  week,  just  like 
I  do. 

Q.  Not  this  week,  he  says. 

THE  PRESIDENT.  I  think  he  had  his  press 


"^Raymond  P.  Brandt  of  the  St.  Louis  Post-Dis- 
patch. 


conference  down  at  the  Press  Club  today .^ 

[15.]  Q.  Mr.  President,  after  Senator 
Ferguson  saw  you  the  other  day,  he  said  he 
had  a  feeling  that  the  Formosa  subject  was 
not  closed,  that  there  is  a  possibility  perhaps 
of  allowing  them  to  hire  military  experts? 

THE  PRESIDENT.  I  think  that  if  you  will 
read  my  statement  on  Formosa,  it  is  thor- 
oughly and  completely  covered.^ 

Q.  I  did.    Does  that  setde 

THE  PRESIDENT.  That  scttlcs  the  question, 
so  far  as  I  am  concerned. 

[16.]  Q.  Mr.  President,  is  there  any  new 
plan  of  economic  aid  for  southeast  Asia  in 
the  works — in  the  making? 

THE  PRESIDENT.  No  UCW  plaUS,  UO. 

Q.  Is  there  anything  you  could  tell  us 
about  economic  aid  to  southeast  Asia? 

THE  PRESIDENT.  No,  I  have  no  statement  to 
make  on  it. 

Reporter:  Thank  you,  Mr.  President. 

THE  PRESIDENT.  You're  wclcome. 

note:  President  Truman's  two  hundred  and  twelfth 
news  conference  was  held  in  his  office  at  the  White 
House  at  4  p.m.  on  Thursday,  January  12,  1950. 

®  Secretary  Acheson's  remarks  at  the  Press  Club  on 
January  12  were  directed  to  an  examination  of  U.S. 
policy  in  Asia.  He  did  not  discuss  Spain  (see  De- 
partment of  State  Bulletin,  vol.  22,  pp.  111-118). 
However,  on  January  18  Secretary  Acheson  re- 
viewed U.S.  policy  toward  Spain  in  a  letter  to  Sena- 
tor Tom  Connally,  Chairman  of  the  Senate  Foreign 
Relations  Committee  (ibid.,  p.  156). 

*  See  Item  3[i]. 


12    Remarks  at  a  Supper  for  Democratic  Senators  and 
Representatives.    January  12,  1950 


Mr,   Chairman,  Mr.    Vice  President,   Mr, 
Spea\er,  and  fellow  Democrats: 

It  is  a  very  great  pleasure  for  me  to  be 
here  again  on  this  occasion.  I  was  here  last 
year  and  discussed  with  you  certain  experi- 
ences of  mine  as  a  Member  of  the  Senate  of 
the  United  States,  and  the  difficulties  I  had 
had  in  being  elected  at  various  times — in 


1934,  194O5  1944,  and  I  think  I  said  some- 
thing about  the  election  of  1948. 

But  you  have  heard  excellent  advice  from 
the  Speaker  of  the  House,  and  from  the  Vice 
President.  And  I  hope  that  all  of  you  will 
remember  that  the  Democratic  Party  is  the 
party  of  the  people  of  the  United  States,  and 
has  been  ever  since  Thomas  Jeilerson. 


109 


[i2]    Jan.  12 


Public  Papers  of  the  Presidents 


The  president  of  Princeton  University  was 
in  to  see  me  yesterday,  and  told  me  that 
Princeton  is  pubUshing  all  the  writings  of 
Thomas  Jefferson,  and  that  there  will  be  51 
volumes  of  it,  and  that  they  have  been  to 
France,  and  to  England,  and  to  the  Library 
of  Congress,  and  to  various  places  in  the 
United  States.  They  have  found  a  letter 
down  in  Oklahoma  from  Thomas  Jefferson 
to  the  Cherokee  Indians,  which  is  a  classic. 
They  are  going  to  publish  all  those  writings 
of  Jefferson,  and  I  hope  someday  somebody 
will  publish  all  the  writings  of  Jackson,  and 
of  Lincoln,  and  of  Woodrow  Wilson,  and  of 
Franklin  D.  Roosevelt  in  that  same  way  in 
which  Princeton  is  working  on  the  writings 
of  Jefferson. 

If  they  do  that,  they  will  find  out  why  the 
Democratic  Party  never  dies.  It  is  the  party 
of  the  people! 

Now,  the  Democratic  Party  has  a  program. 
You  were  all  at  Philadelphia,  and  you  know 
what  that  program  is.  I  believe  that  a  party 
platform  means  what  it  says,  and  I  am  doing 
everything  I  can  to  carry  out  the  platform  of 
the  Democratic  Party  of  the  United  States, 
and  I  am  going  to  keep  fighting  for  that  as 
long  as  I  live. 


It  has  been  a  pleasure  to  be  here  with  you 
tonight.  It  has  been  a  pleasure  to  listen  to 
Sam  Rayburn,  who  has  been  a  friend  of 
mine  ever  since  I  have  been  in  Washington, 
and  to  listen  to  my  boss  here,  the  Vice  Presi- 
dent of  the  United  States.  He  used  to  be 
the  leader  in  the  Senate,  and  as  he  said,  I 
don't  think  he  ever  had  to  call  on  me  or  look 
around  to  find  out  whether  I  was  going  to 
support  him  as  leader  of  the  Senate. 

And  I  hope  that  the  Democrats  in  the 
Senate  of  the  United  States  will  do  that  same 
thing  for  my  friend  Scott  Lucas. 

I  can't  thank  you  enough  for  asking  me 
to  come  here,  and  I  hope  that  next  year, 
after  these  fall  elections,  that  we  will  have 
a  Democratic  Party  that  represents  the  people 
of  the  United  States,  in  the  House  of  Repre- 
sentatives and  in  the  Senate — and  you  will 
have  it  in  the  Executive  Office. 

Thank  you  very  much. 

note:  The  President  spoke  at  8:30  p.m.  at  the  Shore- 
ham  Hotel  in  Washington.  In  his  opening  words 
he  referred  to  William  M.  Boyle,  Jr.,  Chairman  of 
the  Democratic  National  Committee,  Alben  W. 
Barkley,  Vice  President  of  the  United  States,  and 
Sam  Rayburn,  Speaker  of  the  House  of  Representa- 
tives. Later  in  his  remarks  the  President  referred 
to  Scott  Lucas,  Democratic  Senator  from  Illinois 
and  Senate  majority  leader. 


Special  Message  to  the  Congress  on  Synthetic  Rubber. 
January  165  1950 

[  Released  January  16,  1950.    Dated  January  14,  1950  ] 


To  the  Congress  of  the  United  States: 

The  tremendous  increase  in  the  use  of 
rubber  is  one  of  the  outstanding  features  of 
our  industrial  development  in  the  last  50 
years.  Rubber  has  become  indispensable  to 
the  United  States,  in  both  peace  and  v^ar. 
Yet,  10  years  ago  this  country  w^as  dependent 
for  practically  all  of  its  supply  of  this  essen- 
tial material  on  areas  halfway  around  the 
world.  Early  in  World  War  II  these  areas 
were  lost,  and  it  became  necessary  to  develop 


a  domestic  source  of  rubber.  The  creation, 
in  the  midst  of  war,  of  a  new  industry  ca- 
pable of  supplying  a  million  tons  of  synthetic 
rubber  a  year  was  one  of  the  great  achieve- 
ments of  our  war  effort. 

Since  the  war,  the  sources  of  natural  rub- 
ber have  again  become  available  to  us,  and 
production  has  increased  as  the  destruction 
and  dislocations  of  war  have  been  overcome. 
At  the  same  time,  the  world  demand  for 
rubber  has  risen  so  far  above  the  prewar 


1 10 


Harry  S.  Truman,  ig^o 


Jan.  i6    [13] 


levels  that  the  supply  of  natural  rubber  is 
still  less  than  demand.  Thus,  continued 
production  of  synthetic  rubber  in  this  coun- 
try has  prevented  a  serious  w^orld  rubber 
shortage. 

Facilities  for  producing  general-purpose 
synthetic  rubber,  commonly  called  GR-S, 
are  owned  by  the  Government,  as  arc  the 
plants  for  producing  butyl,  the  type  of  syn- 
thetic rubber  used  primarily  in  inner  tubes. 
Facilities  for  producing  other  types  of  syn- 
thetic rubber  are  now^  all  privately  owned. 
In  1949  about  289,000  long  tons  of  GR-S 
and  52,000  long  tons  of  butyl  were  produced 
by  the  Government.  In  addition,  about 
53,000  long  tons  of  other  synthetic  rubbers 
were  produced  in  privately  owned  plants. 

It  is  essential  to  our  national  security  that 
facilities  to  produce  enough  high-quality 
synthetic  rubber  to  meet  our  needs  in  an 
emergency  be  continuously  available.  We 
must  build  up  a  stockpile  of  natural  rubber, 
and  we  have  been  doing  so,  but  the  ac- 
cumulation of  a  stockpile  large  enough  to 
meet  all  emergency  needs  for  rubber  is  im- 
practical. We  must  be  equipped  to  meet 
the  bulk  of  our  needs  from  domestically 
produced  rubber. 

The  Government's  synthetic  rubber  ac- 
tivities are  now  conducted  under  the  Rubber 
Act  of  1948,  which  expires  on  June  30,  1950. 
This  legislation  provides  that  capacity  for 
production  of  synthetic  rubber  shall  be  main- 
tained in  the  United  States  at  all  times,  and 
requires  that  minimum  quantities  shall  be 
produced  and  consumed  each  year.  It  pro- 
vides authority  for  continued  Government 
production  of  synthetic  rubber,  for  regula- 
tions requiring  its  consumption  in  certain 
products,  for  stand-by  maintenance  of  plants 
not  in  operation,  and  for  continued  Govern- 
ment research  in  synthetic  rubber.  Al- 
though the  act  prohibits  the  disposal  of  the 
facilities  in  the  synthetic  rubber  program,  it 
declares  it  to  be  the  policy  of  the  Congress 


that  Government  ownership  shall  terminate 
whenever  consistent  with  national  security. 
The  act  provides  that  on  or  before  January 
15,  1950,  the  President  shall  recommend  to 
the  Congress  "legislation  with  respect  to  dis- 
posal of  Government-owned  rubber-pro- 
ducing facilities  .  .  .  together  with  such 
other  recommendations  as  he  deems  desirable 
and  appropriate." 

As  a  basis  for  making  recommendations 
to  the  Congress,  I  have  had  made  a  thorough 
investigation  of  all  aspects  of  the  rubber 
problem.  A  report  summarizing  the  results 
of  this  investigation  is  transmitted  to  the 
Congress  with  this  message.  The  detailed 
recommendations  in  that  report  have  my 
approval. 

The  rubber  policy  of  the  United  States 
should  be  based  upon  the  fundamental  na- 
tional objectives  of  protection  of  the  national 
security,  promotion  of  a  free  competitive 
economy,  and  achievement  of  a  peaceful  and 
prosperous  world.  I  recommend  that  legis- 
lation succeeding  the  Rubber  Act  of  1948 
be  enacted,  setting  forth  this  rubber  policy, 
and  providing  for  continuation  of  the  syn- 
thetic rubber  industry  in  a  manner  consistent 
with  these  objectives. 

In  order  to  maintain  the  productive  capac- 
ity needed  in  the  event  of  emergency,  the 
President  should  have  the  authority  to  desig- 
nate the  plants  which  must  be  kept  available 
at  all  times  for  synthetic  rubber  production. 
On  the  basis  of  present  technology  and  esti- 
mated requirements,  it  appears  that  our 
present  plant  capacity  of  nearly  a  million  tons 
a  year  should  be  maintained  to  be  prepared 
to  meet  emergency  needs  for  synthetic  rub- 
ber. It  is  not  necessary,  however,  that  all 
this  capacity  be  in  operation.  Maintenance 
in  a  stand-by  condition  of  those  plants  which 
are  not  being  used  should,  therefore,  be 
authorized. 

In  order  to  encourage  technological  devel- 
opment in  the  production  and  use  of  syn- 


III 


[i3]    Jan.  i6 


Public  Papers  of  the  Presidents 


thetic  rubber  and  to  provide  a  basis  for  rapid 
expansion  of  production  if  this  proves  nec- 
essary, at  least  a  minimum  quantity  of  each 
type  of  synthetic  rubber  must  be  produced 
and  consumed.  Certain  types  of  synthetic 
rubber,  v^^hich  are  privately  manufactured, 
have  established  a  sufficiently  strong  position 
in  the  competitive  market  to  assure  a  con- 
tinuing demand  for  them.  Recent  improve- 
ments in  butyl  rubber,  w^hich  is  produced 
only  in  Government-ov^ned  plants,  make  it 
superior  to  natural  rubber  for  use  in  inner 
tubes,  its  major  use.  It  is  probable,  there- 
fore, that  as  soon  as  private  production  of 
butyl  begins,  this  type  of  synthetic  rubber 
will  be  produced  and  consumed  in  adequate 
volume  in  a  competitive  market.  Until 
butyl  is  privately  produced,  however,  the 
President  should  have  the  authority  to  deter- 
mine the  minimum  quantities  of  butyl  which 
must  be  produced  and  consumed,  and  to 
the  extent  necessary  to  require  its  use  in 
specified  products. 

The  situation  with  respect  to  general-pur- 
pose synthetic  rubber  (GR-S)  is  not  quite 
so  favorable.  Since  it  is  not  yet  a  satisfactory 
substitute  for  natural  rubber  in  all  of  the 
products  for  which  it  would  be  used  in  an 
emergency,  it  is  desirable  that  the  Govern- 
ment's authority  to  conduct  research  in  this 
field  continue.  The  physical  properties  of 
GR-S  have  been  steadily  improved  in  recent 
years,  and  at  present  the  quality  differences 
between  GR-S  and  natural  rubber  for  peace- 
time general-purpose  uses  (chiefly  passenger- 
car  tires)  are  not  significant.  Price  differ- 
entials are  likely  to  be  the  determining  factor 
in  the  choice  between  the  two  rubbers  for 
most  uses.  It  is  very  possible  that  for  some 
time  to  come  a  considerable  volume  of  GR-S 
production  will  be  required,  since  the  supply 
of  natural  rubber  is  not  likely  to  be  sufficient 
to  meet  world  market  demand.  This  possi- 
bility, however,  is  not  an  adequately  depend- 


able base  for  national  security  planning. 

I  believe  that,  at  the  present  time,  at  least 
one-quarter  of  total  consumption  of  GR-S 
and  natural  rubber,  and  not  less  than  200,000 
long  tons  annually,  should  be  GR-S.  How- 
ever, the  needed  level  of  production  and 
consumption  may  change  over  the  next  few 
years  wdth  changes  in  world  conditions. 
Therefore,  the  President  should  be  given  the 
authority  to  establish  from  time  to  time  the 
minimum  level  of  production  and  consump- 
tion necessary  to  the  national  security. 

The  present  technological  position  of  gen- 
eral-purpose synthetic  rubber  is  such  that 
it  probably  could  not  compete  for  bulk  uses 
with  natural  rubber  offered  at  significandy 
lower  prices.  There  is  thus  no  adequate 
assurance  that  the  demand  for  GR-S  either 
because  of  the  possible  shortage  of  natural 
rubber  or  because  of  its  technological  quali- 
ties, will  be  sufficient  to  insure  production 
and  consumption  at  levels  necessary  for  na- 
tional security.  The  President  should,  there- 
fore, have  authority  to  require  the  use  of 
GR-S  in  certain  products  to  the  extent  nec- 
essary to  assure  such  production  and  con- 
sumption. 

The  minimum  level  of  production  and 
consumption  should  not  be  higher  than  the 
national  security  requires,  for  if  it  were,  it 
would  unduly  prevent  consumers  in  this 
country  from  realizing  the  benefits  of  mai'ket 
competition,  and  interfere  with  our  objec- 
tives of  expanding  world  trade  and  world 
prosperity. 

It  is  my  earnest  hope  that  controls  on  con- 
sumption of  GR-S  may  be  reduced  or  sus- 
pended over  the  next  few  years,  as  tech- 
nological improvements  result  in  increasing 
quantities  of  general-purpose  synthetic  rub- 
ber being  consumed  without  Government 
support.  This  development  should  be  stim- 
ulated by  the  disposal  of  the  Government's 
plants  to  private  owners. 


112 


Harry  S.  Truman,  ig^o 


Jan.  i6    [14] 


The  President  should  be  authorized  to  dis- 
pose of  the  synthetic  rubber  facilities  to  pri- 
vate owners,  under  conditions  which  will 
protect  the  national  security  and  promote 
effective  competition. 

The  disposal  of  these  plants  while  pro- 
moting effective  competition  will  present 
many  difficult  problems.  The  plants  are 
large  and  involve  large-scale  operations. 
Furthermore,  only  a  few  plants  are  required 
to  meet  the  probable  demand  for  both  re- 
quired and  anticipated  voluntary  consump- 
tion of  synthetic  rubber.  The  legislation 
authorizing  disposal  should  take  account  of 
these  facts,  and  provide  specific  standards 
designed  to  assure  that  the  disposal  program 
will  actively  promote  effective  competition 
and  avoid  monopolistic  concentration. 

A  special  problem  will  arise  when  general- 
purpose  synthetic  rubber  plants  are  privately 
owned,  if  the  Government  continues  to  re- 
quire the  use  of  synthetic  rubber  in  certain 
products.  In  this  situation,  the  Government 
must  see  that  synthetic  rubber  is  made  avail- 
able on  fair  and  reasonable  terms  and  con- 
ditions to  those  required  to  use  it.  Such 
Government  intervention  in  the  normal 
buyer-seller  relationship  will  present  diffi- 
cult practical  problems  for  both  industry  and 
Government.     Development  of  a  vigorous 


private  synthetic  rubber  industry,  however, 
may  soon  result  in  adequate  consumption  of 
synthetic  rubber  to  permit  removal  of  Gov- 
ernment regulation. 

I  believe  that  the  policies  outlined  in  this 
message  and  the  detailed  recommendations 
contained  in  the  accompanying  report  pro- 
vide a  sound  program  for  action.  For  this 
reason,  the  legislation  establishing  these 
policies  can  be  of  relatively  long  duration. 
Furthermore,  a  firmly  established  legislative 
framework  is  highly  desirable  if  disposal  of 
the  Government's  synthetic  rubber  plants  is 
to  be  successful.  I  recommend  the  adoption 
of  legislation  of  ten  years  duration  in  order 
to  provide  adequate  protection  of  the  na- 
tional security  and  to  contribute  to  the  de- 
velopment of  a  vigorous,  competitive,  and 
privately  owned  synthetic  rubber  industry 
in  the  United  States. 

Harry  S.  Truman 

note:  a  report  by  John  R.  Steelman,  Assistant  to 
the  President,  entitled  "A  Report  to  the  President  on 
the  Maintenance  of  the  Synthetic  Rubber  Industry  in 
the  United  States  and  Disposal  of  the  Governnient- 
Owned  Synthetic  Rubber  Facilities,"  was  trans- 
mitted with  the  message  (see  House  Document  448, 
8 1  St  Cong.,  2d  sess.). 

On  June  24,  1950,  the  President  approved  a  bill 
extending  the  Rubber  Act  of  1948  until  June  30, 
1952  (64  Stat.  256). 


14    Remarks  at  a  Dinner  Given  by  the  Chairmen  and  Directors 
of  Federal  Reserve  Banks.    January  i6,  1950 


Mr.  Chairman,  gentlemen: 

I  haven't  any  business  to  be  discussing 
things  financial  with  the  financial  brains 
that  are  before  me  tonight.  I  am  just  a 
farmer  from  Missouri  who  had  bad  luck 
and  got  kicked  into  a  big  job.  I  was  telling 
the  gentleman  on  my  right  here  how  that 
came  about,  and  I  think  he  is  still  somewhat 
skeptical. 


But  naturally  I  am,  and  always  have  been, 
interested  in  the  financial  stability  of  govern- 
ment, whether  that  government  is  village, 
city,  county,  State,  or  national.  I  have  spent 
most  of  my  time  studying — since  I  have  been 
in  politics,  and  that  has  been  a  long  time — 
fiscal  policies  of  various  segments  of  the 
Government  of  the  United  States,  which  in 
my  opinion  is  the  greatest  Government  that 


113 


[14]    Jan.  16 


Public  Papers  of  the  Presidents 


the  sun  has  ever  shone  upon,  for  the  simple 
reason  that  it  is  a  Government  of  check  and 
balance.  It  is  a  Government  that  no  one 
man  or  any  one  group  of  men  can  control. 
It  is  a  Government  that  is  intended  to  be  in 
the  interests  of  all  the  people,  and  it  is  150 
million  that  make  it  up. 

I  had  my  first  experience  in  government 
fiscal  matters  as  the  presiding  and  executive 
officer  of  a  county  of  500,000  people.  And 
the  problems  of  that  county  of  500,000  peo- 
ple wtxt  just  exactly  parallel  with  the  prob- 
lems of  150  million.  I  had  exactly  the  same 
trouble  w^ith  the  bankers  that  I  have  now. 
And  I  had  no  difficulty  in  convincing  them, 
when  I  thought  I  was  right  and  when  I 
proved  to  be  right,  that  the  right  thing  to 
do  was  what  they  finally  did. 

I  appreciate  very  much  the  kind  remarks 
that  your  Federal  Reserve  Chairman  has 
made  about  me.  I  hope  that  his  compli- 
ments and  his  good  thoughts  of  me  will 
never  have  to  be  called  back,  because  my 
only  interest,  my  only  interest,  as  President 
of  the  United  States,  is  the  welfare  of  the 
United  States  of  America.  And  the  welfare 
of  the  United  States  of  America  is  the  wel- 
fare of  the  world. 

Whether  we  like  it  or  not,  we  are  at  the 
top  of  the  heap  in  world  affairs,  a  position 
which  none  of  us  likes  to  contemplate,  a 
position  which  has  responsibilities  almost  too 
big  for  any  man  or  any  group  of  men  to 
contemplate.  Yet  that  position  is  ours. 
And  the  fact  that  we  are  willing  to  assume 
the  responsibility  that  goes  with  that  posi- 
tion is  a  part  of  your  responsibility,  as  well 
as  a  part  of  the  responsibility  of  the  United 
States  Government,  made  up  of  its  Congress, 
its  judiciary,  and  its  President. 

This  is  a  serious  age  through  which  we 
are  going.    This  is  the  aftermath  of  the 


greatest  struggle  in  the  history  of  the  world 
for  free  government.  Never  after  a  struggle 
of  anything  like  these  proportions  have  we 
had  as  many  problems  to  face  as  we  have 
today. 

They  are  the  problems  of  every  citizen  of 
the  United  States,  from  the  taxicab  driver 
out  here  at  the  door  to  the  president  and 
chairman  of  the  board  of  the  greatest  bank 
in  the  United  States,  as  well  as  the  problems 
of  the  President  of  the  United  States  who  is 
the  elected  official  at  the  head  of  the  Govern- 
ment. 

For  that  reason  I  came  over  here  at  Tom 
McCabe's  request  to  meet  you  and  get 
acquainted  with  you,  and  to  let  you  know 
that  in  spite  of  certain  information,  which 
has  been  pretty  well  distributed,  that  I  do  not 
wear  horns  and  I  haven't  a  tail — I  am  just  an 
ordinary  citizen  of  this  great  Republic  of 
ours  who  has  the  greatest  responsibility  in 
the  world  and  whose  responsibility  is  your 
responsibility,  and  for  that  reason  it  is  nec- 
essary that  all  of  us  make  every  effort  possible 
to  make  successful  the  goal  which  we  are 
attempting  to  attain. 

And  that  is  peace  in  the  world — peace  in 
Europe,  peace  in  Asia,  peace  in  South 
America,  peace  in  Africa,  peace  in  the  West- 
ern Hemisphere,  and  the  assumption  of  the 
leadership  necessary  to  bring  that  about. 

Now  gentlemen,  you  represent  the  great- 
est financial  institution  in  the  history  of  the 
world,  except  the  Treasury  of  the  United 
States.  And  between  the  two  of  you,  we  can 
attain  this  goal:  world  peace,  world  pros- 
perity, and  the  welfare  of  all  the  people. 

That  is  all  I  am  striving  for.  That  is  what 
I  hope  to  have  the  country  on  the  road  to 
accomplishing  when  my  service  as  the  head 
of  the  greatest  Government  in  the  history  of 
the  world  ends. 


114 


Harry  S.  Truman,  ig^o 


Jan.  19    [16] 


note:  The  President  spoke  at  9:20  p.m.  at  the 
Carlton  Hotel  in  Washington.  His  opening  words 
"Mr.  Chairman"  referred  to  Thomas  B.  McCabe, 


Chairman  of  the  Board  of  Governors  of  the  Federal 
Reserve  System. 


15    Remarks  to  a  Delegation  From  the  National  Emergency  Civil 
Rights  Mobilization  Conference.    January  17,  1950 


YOU  don't  need  to  make  that  speech  to  me, 
it  needs  to  be  made  to  Senators  and  Con- 
gressmen. Every  ejflort  is  being  made  by  the 
executive  branch  of  the  Government  to  get 
action  on  these  measures.  I  have  been  w^ork- 
ing  at  them  ever  since  I  went  to  Congress. 
I  went  there  in  1935,  and  that  is  a  long  time 
ago. 

We  have  made  some  progress.  We 
haven't  made  enough.  We  hope  to  make 
more.  The  passage  of  the  resolution  by  the 
Rules  Committee  of  the  House  the  other  day 
is  a  blow  that  is  serious  and  backward- 
looking.  I  am  doing  everything  possible  to 
have  that  motion  beaten  when  it  comes  up 
for  consideration  on  the  floor  of  the  House. 
Every  effort  is  being  made  to  get  a  vote  on 
these  measures  in  the  Senate.  The  leader  of 
the  majority  and  the  Vice  President  have 
assured  me  that  they  will  eventually  get  a 
vote,  if  it  takes  all  summer. 

I  hope  that  when  that  vote  is  taken  we  will 
be  in  a  better  position  to  understand  who 
our  friends  are,  and  who  are  not. 

This  is  a  serious  situation.  This  civil 
rights  program,  which  I  have  sent  to  the 


Congress  on  every  occasion  that  it  has  been 
possible  to  send  it,  is  one  that  is  necessary, 
if  we  are  going  to  maintain  our  leadership 
in  the  world.  We  can't  go  on  not  doing  the 
things  that  we  are  asking  other  people  to  do 
in  the  United  Nations. 

I  hope  all  of  you  will  continue  your  hard 
work  on  the  subject,  and  that  you  will  make 
it  perfectly  plain  to  the  Senators  and  Con- 
gressmen who  represent  your  States  and 
districts  that  action  is  what  we  want;  and 
I  think  that  is  possibly  the  only  way  we  can 
get  action. 

I  thank  you  very  much. 

note:  The  President  spoke  at  12:10  p.m.  in  his 
office  at  the  White  House. 

The  National  Emergency  Civil  Rights  Mobiliza- 
tion Conference,  sponsored  by  55  organizations  inter- 
ested in  the  promotion  of  civil  rights,  was  held  in 
Washington  January  15-17,  1950.  The  conference 
had  as  its  objective  support  for  the  President's  civil 
rights  program  and  particularly  for  the  fair  employ- 
ment practice  bill. 

The  delegation  that  met  v^^ith  the  President  wsls 
headed  by  Roy  Wilkins,  chairman  of  the  conference 
and  acting  secretary  of  the  National  Association  for 
the  Advancement  of  Colored  People.  As  Mr.  Wil- 
kins started  to  read  a  prepared  statement  he  was 
interrupted  by  the  President. 


16    The  President's  News  Conference  of 
January  19,  1950 


THE  PRESIDENT.  I  have  uo  Special  announce- 
ments to  make  this  morning,  but  I  will  try 
to  answer  your  questions  if  I  can. 

[i.]     Q.  Mr.  President,  do  you  plan  to 


name  a  successor  to  Myron  Taylor  .^^ 
THE  PRESIDENT.  The  matter  is  under  study. 
Q.  Does  that  go  also,  Mr.  President,  for 

continuing  the  mission  .^^ 


115 


[i6]    Jan.  19 


Public  Papers  of  the  Presidents 


THE  PRESIDENT.  It  is  undcf  study,  yes.^ 

Q.  What  was  the  answer,  sir? 

THE  PRESIDENT.  The  matter  is  under  study. 
The  State  Department  is  studying  it.  I 
think  Dean  Acheson  answered  that  yester- 
day.^ 

[2.]  Q.  Mr.  President,  has  it  been  deter- 
mined when  the  tax  message  will  go  up?  ^ 

THE  PRESIDENT.  As  quickly  as  it  is  ready. 
It  will  go  up  in  a  few  days.  We  have  been 
working  very  hard  on  it.  No  controversy. 
It  is  a  technical  matter.  Takes  a  litde  time 
to  get  it  ready. 

[3.]  Q.  Mr.  President,  do  you  plan  to 
fill  the  vacancy  on  the  War  Claims  Commis- 
sion any  time  soon,  sir? 

THE  PRESIDENT.   On  what? 

Q.  The  War  Claims  Commission.  You 
recall  that  one  of  the  commissioners  was 

THE  PRESIDENT.  Oh  yes,  he  was  killed  in 
an  airplane  accident.    Yes,  we  will  fill  that 


*  Myron  C.  Taylor  was  appointed  as  the  Presi- 
dent's Personal  Representative  at  the  Vatican  on 
December  23,  1939;  his  resignation  became  effec- 
tive on  January  18,  1950.  His  letter  of  resignation 
and  the  President's  reply,  both  dated  January  18 
and  released  by  the  White  House  on  the  same  date, 
are  published  in  the  Department  of  State  Bulletin 
(vol.  22,  p.  181). 

On  October  20,  1951,  the  President  appointed 
Gen.  Mark  W.  Clark  to  be  the  first  U.S.  Ambassador 
to  Vatican  City.  According  to  reports  in  the  press 
the  White  House  reaffirmed  the  power  of  the  Presi- 
dent to  establish  diplomatic  relations  with  the 
Vatican  without  consulting  Congress  but  announced 
that  the  President  would  request  congressional  ap- 
proval of  the  nomination. 

After  widespread  controversy  on  the  appointment 
and  protests  from  numerous  Protestant  groups,  Gen- 
eral Clark  withdrew  as  the  nominee  on  January  13, 
1952.  A  U.S.  Ambassador  to  Vatican  City  was 
not  appointed  during  the  Truman  administration. 

^On  January  18,  1950,  Secretary  Dean  Acheson 
sent  a  telegram  to  the  American  Embassy  in  Rome 
concerning  the  office  of  the  President's  Personal 
Representative  at  the  Vatican.  The  text  of  the 
telegram  was  not  released. 

^  See  Item  18. 


as  promptly  as  we  can.'* 

[4.]  Q.  Mr.  President,  is  Charles  Luck- 
man  being  persuaded  to  accept  a  Govern- 
ment position? 

THE  PRESIDENT.  Not  that  I  kuow  o£.  I 
haven't  had  any  conversation  with  him  on  the 
subject.  All  I  know  about  what  has  hap- 
pened is  what  I  saw  in  the  paper. 

[5.]  Q.  Mr.  President,  are  you  consider- 
ing direct  negotiations  with  Russia  on  the 
hydrogen  bomb  .f^ 

THE  PRESIDENT.   No. 

Q.  Mr.  President,  has  David  Lilienthal 
offered  to  go  to  Russia  on  that  subject  .f* 

THE  PRESIDENT.  No,  he  has  not. 

[6.]  Q.  Mr.  President,  the  National 
Lawyers  Guild,  I  believe,  has  asked  you  to 
investigate  the  FBI,  I  think,  again.  Have 
you  received  any  such  request.? 

THE  PRESIDENT.  We  have  received  no 
formal  communication  from  the  Lawyers 
Guild. 

Q.  Nothing  formal 

THE  PRESIDENT.  We  have  received  no 
formal  communication.  I  have  heard  lots 
of  rumors  on  the  subject. 

Q.  Would  you  like  to  say  something  about 
it.? 

THE  PRESIDENT.  No,  I  have  no  comment. 

Q.  Mr.  President,  we  didn't  hear  the 
question,  I'm  sorry. 

THE  PRESIDENT.  They  Wanted  to  know  if 
the  Lawyers  Guild  was  going  to  ask  me  to 
investigate  the  FBI,  and  I  told  him  I  hadn't 
heard  it  officially. 

[7.]  Q.  Mr.  President,  what  did  you  see 
Congressman  Sabath  about  this  morning.? 


*On  February  28,  1950,  the  President  transmitted 
to  the  Senate  the  nomination  of  Myron  Wiener  as  a 
member  of  the  War  Claims  Commission.  The  ap- 
pointment filled  the  vacancy  created  by  the  death  of 
David  N.  Lev^is  on  November  29,  1949,  v^hen  he 
was  killed  in  the  crash  of  an  airliner  in  Dallas,  Tex. 


116 


Harry  S.  Truman,  igp 


Jan.  19    [16] 


THE  PRESIDENT.  The  proposcd  change  in 
the  rules  of  the  House.  He  came  up  to 
talk  to  me  about  it  at  my  suggestion.^ 

Q.  Are  you  against  it?     [Laughter] 

THE  PRESIDENT.  Of  couTse  I  am  against  it. 
I  hope  they  won't  do  it. 

Q.  Mr,  President,  he  suggested  he  might 
make  a  change  himself,  by  way  of  appeasing 
the  southerners.  Did  he  discuss  that  with 
you? 

THE  PRESIDENT.  I  dou't  know  what  that 
change  is.  I  didn't  discuss  that  with  him. 
I  told  him  I  was  opposed  to  the  change. 
Period. 

Q.  Was  he  optimistic  about  beating  it? 

THE  PRESIDENT.  He  thought  he  could  beat 
it.   That  is  the  change. 

Q.  Mr.  President,  have  you  spoken  to 
Speaker  Rayburn  on  this  whole  subject  of 
the  rules  change 

THE  PRESIDENT.  Yes,  I  have — yes,  I  have. 
I  have  talked  to  Speaker  Rayburn  every 
Monday  on  the  subject  for  the  last  year  and 
a  half,  and  the  year  before  that,  also. 

Q.  I  mean  particularly  this  Monday,  sir? 
[Laughter] 

THE  PRESIDENT.  Yes,  we  discussed  it. 

Q.  Are  you  in  agreement  on  it,  Mr.  Presi- 
dent? 

THE  PRESIDENT.   YeS. 

[8.]     Q.  Mr.  President,  is  there  a  nomina- 
tion in  sight  for  Alien  Property  Custodian? 
THE  PRESIDENT.  I  thought  the  Alien  Prop- 


"  Representative  Adolph  J.  Sabath  of  Illinois, 
Chairman  of  the  House  Rules  Committee.  The 
proposed  change  in  the  rules  had  to  do  with  an 
attempt  to  restore  the  power  of  the  Committee  to 
pigeonhole  bills.  Under  the  rule  in  effect  since 
January  3,  1949,  any  bill  held  up  by  the  Rules  Com- 
mittee for  21  days  could  be  brought  to  the  floor 
at  the  call  of  the  chairman  of  the  committee  of 
original  jurisdiction — ^provided  the  Speaker  recog- 
nized him  for  such  a  call.  On  January  20  the 
House  voted   236-183   to  retain  the  21 -day  rule. 


erty  Custodian  business  was  wound  up. 
Which  is  it?  Maybe  Fm  mistaken — I  was 
thinking  about  surplus  property.  That  is 
about  to  wind  up. 

[9.]  Q.  Mr.  President,  were  you  able  to 
work  out  an  agreement  on  the  Missouri  sen- 
atorial primary  with  the  Missouri  politicians 
this  week? 

THE  PRESIDENT.  I  made  a  statement  last 
week  in  which  I  said  that  I  was  for  Allison,^ 
and  I  think  you  will  find  the  Missouri  poli- 
ticians generally  in  agreement  with  that. 

Q.  Generally  in  agreement? 

THE  PRESIDENT.  Yes.    [Laughter] 

Q.  Mr.  President,  does  that  mean  that 
these  other  men  may  withdraw? 

THE  PRESIDENT.  I  Can't  auswer  that  ques- 
tion. You  see,  Missouri  has  a  free  primary, 
and  anybody  in  the  world  can  run  that  wants 
to.  There  is  nothing  to  prevent  them — 
nothing  to  prevent  them  trying  it.  I  am 
just  answering  your  question. 

[10.]  Q.  Mr.  President,  are  your  legal 
advisers  in  agreement  with  Senator  Taft, 
who  says  that  the  Taft-Hardey  Act  oilers 
no  basis  for  Mr.  Denham's  action  yester- 
day against  the  ^ 

THE  PRESIDENT.  I  Can't  auswer  that.  Mr. 
Denham  is  acting  for  the  National  Labor 
Relations  Board.  He  has  a  right  to  take 
such  steps  as  he  thinks  the  law  provides.  He 
has  been  in  close  touch  with  the  White 


•See Item  3  [8]. 

^On  January  18,  Robert  N.  Denham,  General 
Counsel,  National  Labor  Relations  Board,  filed  a  peti- 
tion in  the  Federal  District  Court  to  compel  John  L. 
Lewis  and  the  United  Mine  Workers  of  America 
to  restore  normal  coal  production. 

Denham  based  his  petition  on  the  section  of  the 
Taft-Hardey  law  forbidding  unfair  labor  practices. 
According  to  the  New  York  Times,  Senator  Robert 
A.  Taft  of  Ohio  stated  that  he  did  not  believe  the 
avenue  of  approach  used  by  Mr.  Denham  would  be  a 
suitable  substitute  for  invocation  of  the  national 
emergency  section  of  the  Taft-Hartley  Act. 


117 


[i6]    Jan.  19 


Public  Papers  of  the  Presidents 


House,  but  the  White  House  has  had  nothing 
to  do  with  his  actions. 

[11.]  Q.  Mr.  President,  do  you  favor 
former  Assistant  Attorney  General  Alex 
Campbell  for  nomination  to  the  Senate  in 
Indiana? 

THE  PRESIDENT.  I  am  not  in  the  Indiana 
senatorial  primary.  I  am  only  in  the  Mis- 
souri primary. 

Q.  Yes,  sir. 

THE  PRESIDENT.  After  the  primary  is  over 
in  Indiana  I  hope  to  help  elect  a  Democratic 
Senator  from  Indiana. 

[12.]  Q.  Mr.  President,  getting  back, 
did  you  say  that  Missouri  Democrats  v^ere 
in  general  agreement  with  you,  or  generally 
in  agreement  with  you?     [Laughter^ 

THE  PRESIDENT.  Now,  what  do  you  mean 
by  that  question?  {More  laughter]  Are  you 
a  lawyer?  What  do  you  mean  by  that  ques- 
tion?   I  think  it  means  the  same  thing. 

[13.]  Q.  Mr.  President,  it  has  been  re- 
ported in  Chicago  that  come  election  time — 
not  primary  time — that  you  will  be  making 
one  or  more  speeches  in  Illinois  for  Senator 
Lucas? 

THE  PRESIDENT.  We  wiU  cross  that  bridge 
when  we  get  to  it.  Of  course,  I  want  Sena- 
tor Lucas  to  come  back  now,  and  I  will  do 
everything  I  can  to  help  him  come  back. 
If  it  requires  that,  I  will  do  it. 

[14.]  Q.  May  I  go  back  to  the  Denham 
matter  a  moment? 

THE  PRESIDENT.  YeS. 

Q.  I  understand  he  has  a  right  to  take 
what  action  he  thinks  proper? 

THE  PRESIDENT.  That  is  correct. 

Q.  Have  you  had  communication  with  him 
on  the  subject? 

THE  PRESIDENT.  No.  He  was  in  communi- 
cation with  me.  I  had  no  communication 
whatever.  He  told  us  what  he  was  going 
to  do,  and  we  listened. 


[  15.]  Q.  Mr.  President,  have  you  decided 
on  the  successor  to  Mr.  Lilienthal?  ^ 

THE  PRESIDENT.  No,  I  havc  not.  I  will 
announce  it  whenever  I  am  ready. 

[16.]  Q.  Mr.  President,  is  there  anything 
more  you  can  tell  us  about  the  plans  for  the 
leaders  in  the  Senate  to  keep  the  Senate 
through  the  summer  if  necessary  to  get  a 
civil  rights  vote? 

THE  PRESIDENT.  No,  I  cau't  commeut  fur- 
ther on  that.   I  have  said  all  that  is  necessary. 

What  is  it  somebody  wants  to  ask  me? 

[17.]  Q.  Do  you  plan  any  further  action 
in  the  coal  dispute? 

THE  PRESIDENT.  I  am  in  constant  touch 
with  the  situation  in  the  coal  industry. 
When  the  situation  develops  to  the  point 
where  it  is  necessary  for  me  to  take  action, 
I  will  take  it. 

[18.]  Q.  Mr.  President,  do  you  have 
under  consideration  the  production  of  a 
hydrogen  bomb? 

THE  PRESIDENT.  I  caunot  couimeut  on 
that.^ 

[19.]  Q.  Mr.  President,  you  won't  take 
any  part  in  the  primary  race  in  South  Caro- 
lina ? 

THE  PRESIDENT.  I  will  take  no  part  in  any 
primary  race  outside  the  State  of  Missouri, 
That  is  my  State,  where  I  have  the  right  to 
do  as  I  please.  The  other  States  have  a  right 
to  do  as  they  please.  After  the  primaries  are 
over,  then  I  will  be  in  a  different  frame  of 
mind. 

[20.]  Q.  Has  anybody  discussed  the 
question  of  a  formula  by  which  you  can  go 
to  determine  when  there  is  and  when  there 

®The  resignation  of  Davil  E.  Lilienthal  as  Chair- 
man of  the  Atomic  Energy  Commission  became 
effective  on  February  15,  1950.  On  February  16, 
1950,  the  President  designated  Sumner  T.  Pike  as 
Acting  Chairman  of  the  Commission,  and  on  July 
II,  1950,  Mr.  Truman  appointed  Gordon  E.  Dean 
to  be  Chairman  of  the  Commission. 

®  See  Item  26. 


118 


Harry  S.  Truman,  ig^o 


Jan.  19    [16] 


is  not  a  coal  emergency,  that  is,  when  the 
shortage  is 

THE  PRESIDENT.  The  decision  is  in  the 
hands  of  the  President,  and  when  the  Presi- 
dent thinks  there  is  an  emergency,  he  will 
declare  it  and  take  whatever  action  is  neces- 
sary. 

Q.  In  other  words,  the  emergency  has  not 
arisen? 

THE  PRESIDENT.  The  emergency  is  not 
here.    The  national  emergency  is  not  here. 

Q.  Mr.  President,  if  things  go  on  as  they 
are  now,  how  long  do  you  think  it  will  be 
before  there  would  be  a  national  emergency? 

THE  PRESIDENT.  Your  gucss  is  as  good  as 
mine.  I  get  constant  reports  on  the  situation. 
When  I  think  there  is  an  emergency,  I  will 
make  a  statement  on  it,  and  I  think  you  will 
understand  it  clearly. 

Q.  Does  an  emergency  threaten,  Mr. 
President? 

THE  PRESIDENT.  I  don't  carc  to  answer  that 
question.  You  will  have  to  dig  that  up  for 
yourself. 

Q.  Has  the  Denham  action  your  blessing, 
Mr.  President? 

THE  PRESIDENT.  Mr.  Dcuham  is  working 
for  the  National  Labor  Relations  Board,  and 
it  is  not  my  business  to  bless  him  or  unbless 
him.     [Laughter] 

Q.  Mr.  President,  if  there  is  no  objection — 
is  there  any  connection  between  Mr.  Den- 
ham's  action  and  the  presence  or  the  lack  of 
presence  of  a  national  emergency? 

THE  PRESIDENT.  Noue  that  I  know  of. 
None  that  I  know  of — no  connection.  Mr. 
Denham  was  requested  to  take  any  action 
ever  since  the  31st  of  December,  and  he  has 
generally  decided  to  take  it. 

Q.  It  isn't  really  a  national  emergency? 

THE  PRESIDENT.  No,  uo.  Has  nothing  to 
do  with  a  national  emergency. 

[21.]     Q.  Mr.  President,  you  don't  have 


any  comment  on  former  Secretary  Jimmy 
Byrnes  entering  ^° 

THE  PRESIDENT.  No,  I  have  no  comment. 
Mr.  Byrnes  is  a  free  agent  to  do  as  he  damn 
pleases.     [Laughter] 

Q.  That's  a  good  quote,  Mr.  President! 
[Laughter] 

[22.]  Q.  Mr.  President,  I  want  to  ask 
one  question,  because  I  know  that  every- 
body wants  it  answered.  Will  there  be  any 
change  in  the  status  of  General  Vaughan  as 
a  result  of  the  reports  ^^ 

THE  PRESIDENT.  There  will  be  none. 

[23.]  Q.  On  the  subject  of  Mr.  Denham, 
Mr.  President,  have  various  calls  which  have 
been  sounded  by  individuals  for  the  recall 
of  Mr.  Denham  been  brought  to  your  atten- 
tion in  any  official 

THE  PRESIDENT.  I  have  sccu  them  in  the 
paper,  but  nowhere  else. 

Q.  Nowhere  else? 

THE  PRESIDENT.  Nowhere  else  but  in  the 
paper.  Like  a  lot  of  other  guesses  that  get 
into  the  papers.     [Laughter] 

Reporter:  Thank  you,  Mr.  President. 

note:  President  Truman's  two  hundred  and  thir- 
teenth news  conference  was  held  in  his  office  at  the 
White  House  at  10:30  a.m.  on  Thursday,  January 
19,  1950. 


"  On  January  14  James  F.  Byrnes,  former  Secretary 
of  State,  announced  that  he  would  be  a  candidate 
for  the  Democratic  nomination  as  Governor  of 
South  CaroUna. 

^Maj.  Gen.  Harry  H.  Vaughn,  Military  Aide  to 
the  President. 

The  report  of  the  Investigations  Subcommittee  of 
the  Senate  Committee  on  Expenditures  in  the  Execu- 
tive Departments,  entided  "The  5-Percenter  Investi- 
gation," was  submitted  to  the  Senate  on  January 
18,  1950.  It  is  published  in  Senate  Report  1232 
(8 1st  Cong.,  2d  sess.). 

The  report  dealt  with  the  problem  of  "manage- 
ment consultants,"  influence  peddlers  who  sought 
to  convince  the  small  businessman  that  their  serv- 
ices were  needed  in  order  to  obtain  Government 
contracts. 


119 


[17]    Jan.  21 


Public  Papers  of  the  Presidents 


17    Statement  by  the  President  on  the  Rejection  by  the  House  of 
Representatives  of  the  Korean  Aid  Bill.    ]anuary  21,  1950 

I  AM  releasing  herewith  a  letter  which  I 
have  received  from  the  Secretary  of  State 
about  the  action  of  the  House  of  Representa- 
tives in  rejecting  the  Korean  aid  bill  on 
Thursday  by  a  vote  of  193  to  191.  I  entirely 
concur  in  the  Secretary's  views  as  to  the 
seriousness  of  this  action  and  the  necessity 
for  its  speedy  rectification.  I  shall  take  up 
this  matter  with  congressional  leaders  and 
urge  upon  them  the  need  for  immediate 
action,  in  order  that  important  foreign 
policy  interests  of  this  country  may  be  prop- 
erly safeguarded. 


note:  The  letter  of  the  Secretary  of  State,  dated 
January  20,  follows: 

"Dear  Mr.  President: 

"The  Department  of  State  received  with  concern 
and  dismay  the  report  that  the  House  of  Representa- 
tives had  rejected  the  Korean  Aid  Bill  of  1949  by  a 
vote  of  193  to  191.  This  action,  if  not  quickly 
repaired,  will  have  the  most  far-reaching  adverse 
effects  upon  our  foreign  policy,  not  only  in  Korea 
but  in  many  other  areas  of  the  world.  It  has  been 
fundaniental  to  our  policy  that  in  those  areas  where 
a  reasonable  amount  of  American  aid  can  make  the 
difference  between  the  maintenance  of  national  inde- 
pendence and  its  collapse  under  totalitarian  pressure, 
we  should  extend  such  aid  within  a  prudent  assess- 
ment of  our  capabilities.  The  American  people 
understand  this  policy  and  have  supported  our  ex- 
tending aid  in  such  circumstances;  the  success  of 
such  aid  is  a  matter  of  public  record. 

"The  Republic  of  Korea  owes  its  existence  in 
large  measure  to  the  United  States,  which  freed  the 
country  from  Japanese  control.  The  peoples  of  the 
Republic  of  Korea,  the  other  peoples  of  Asia,  and 
the  members  of  the  United  Nations  under  whose 
observation  a  government  of  the  Republic  was  freely 
elected,  alike  look  to  our  conduct  in  Korea  as  a 


measure  of  the  seriousness  of  our  concern  with  the 
freedom  and  welfare  of  peoples  maintaining  their 
independence  in  the  face  of  great  obstacles.  We 
have  not  only  given  the  RepubUc  of  Korea  inde- 
pendence; since  then  we  have  provided  the  economic, 
military,  technical,  and  other  assistance  necessary 
to  its  continued  existence.  Of  the  current  program 
of  economic  assistance  we  are  extending  to  Korea, 
half  was  provided  by  the  Congress  during  the  previ- 
ous session.  The  withholding  of  the  remainder 
would  bring  our  efforts  to  an  end  in  mid-course. 
It  is  our  considered  judgment  that  if  our  limited 
assistance  is  continued  the  Republic  will  have  a  good 
chance  of  survival  as  a  free  nation.  Should  such 
further  aid  be  denied,  that  chance  may  well  be  lost 
and  all  our  previous  efforts  perhaps  prove  to  have 
been  vain. 

"We  are  concerned  not  only  about  the  conse- 
quences of  this  abrupt  about-face  in  Korea,  whose 
government  and  people  have  made  valiant  efforts  to 
win  their  independence  and  establish  free  institu- 
tions under  the  most  difficult  circumstances,  but  we 
are  also  deeply  concerned  by  the  effect  which  would 
be  created  in  other  parts  of  the  world  where  our 
encouragement  is  a  major  element  in  the  struggle 
for  freedom. 

"It  is  difficult  for  us  to  believe  that  the  Members 
of  the  House  of  Representatives  who  voted  against 
this  measure  took  sufficiently  into  account  the  serious 
implications  of  this  action  upon  the  position  of  the 
United  States  in  the  Far  East.  These  implications 
were  set  forth  in  considerable  detail  in  hearings 
before  the  committees  of  Congress  by  the  Department 
of  State,  Department  of  Defense  and  the  Economic 
Cooperation  Administration. 

"In  our  judgment  it  would  be  disastrous  for  the 
foreign  policy  of  the  United  States  for  us  to  con- 
sider this  action  by  the  House  of  Representatives  as 
its  last  word  on  the  matter. 
"Faithfully  yours, 

"Dean  Acheson" 

On  February  14,  1950,  the  President  approved 
the  Far  Eastern  Economic  Assistance  Act  of  1950 
(64  Stat.  5). 


18    Special  Message  to  the  Congress  on  Tax  Policy. 
January  23,  1950 


To  the  Congress  of  the  United  States: 

The  tax  policy  of  the  United  States  Gov- 
ernment is  of  major  significance  to  the  na- 


tional welfare.  Taxes  are  the  means  by 
which  our  people  pay  for  the  activities  of 
the  Government  which  are  necessary  to  our 


120 


Harry  S.  Truman,  ig^o 


Jan.  23    [18] 


survival  and  progress  as  a  nation.  Decisions 
about  Federal  tax  policy  should  be  made  in 
full  recognition  of  the  economic  and  budg- 
etary situation,  and  should  contribute  to  our 
national  objectives  of  economic  growth  and 
broader  opportunity  for  all  our  citizens. 

At  the  present  time,  I  believe  we  should 
make  some  revisions  in  our  tax  laws  to 
improve  the  fairness  of  the  tax  system,  to 
bring  in  some  additional  revenue,  and  to 
strengthen  our  economy. 

Our  general  objective  should  be  a  tax  sys- 
tem which  will  yield  sufficient  revenue  in 
times  of  high  employment,  production,  and 
national  income  to  meet  the  necessary  ex- 
penditures of  the  Government  and  leave 
some  surplus  for  debt  reduction.  In  the 
Budget  Message,  I  estimated  that  receipts  in 
the  fiscal  year  1951  will  fall  short  of  meeting 
expenditures  by  5.1  billion  dollars.  This 
deficit  will  be  due  largely  to  the  shortsighted 
tax  reduction  enacted  by  the  Eightieth  Con- 
gress, and  to  the  present  necessity  for  large 
expenditures  for  national  security  and  world 
peace.  Moreover,  owing  to  the  time  lag  be- 
tween corporation  earnings  and  tax  pay- 
ments, the  1949  decline  in  corporation  profits 
will  be  reflected  in  lower  tax  receipts  in  the 
fiscal  year  1951. 

The  policies  I  am  recommending  to  the 
Congress  are  designed  to  reduce  the  deficit 
and  bring  about  a  budgetary  balance  as  rap- 
idly as  we  can  safely  do  so.  These  policies 
are  threefold:  first,  to  hold  expenditures  to 
the  lowest  level  consistent  with  the  national 
interest;  second,  to  encourage  and  stimulate 
business  expansion  which  will  result  in  more 
revenue;  and  third,  to  make  a  number  of 
changes  in  the  tax  laws  which  will  bring  in 
some  net  additional  revenue  and  at  the  same 
time  improve  the  equity  of  our  tax  system. 

First,  as  to  Government  expenditures. 

I  have  recently  transmitted  to  the  Congress 
a  budget  containing  recommendations  for 
appropriations  and  estimates  of  expenditures 


for  the  fiscal  year  195 1.  This  budget  was 
carefully  prepared  with  a  view  toward  hold- 
ing expenditures  to  the  lowest  possible  levels 
consistent  with  the  requirements  of  national 
security,  world  peace,  economic  growth,  and 
the  well-being  of  our  people. 

The  decisions  of  the  Congress,  as  well  as 
unpredictable  changes  in  circumstances  over 
the  next  eighteen  months,  may  alter  in  many 
particulars  the  character  and  amount  of  the 
expenditures  contemplated  in  this  budget. 
Nevertheless,  I  believe  the  estimates  con- 
tained in  the  budget  represent  the  most 
realistic  appraisal  that  it  is  possible  to  make 
at  this  time  of  the  necessary  expenditures  in 
1 95 1.  I  believe  the  Congress  will  generally 
concur  in  this  view  after  it  has  had  an  oppor- 
tunity to  consider  these  estimates  carefully. 

The  expenditures  estimated  in  the  1951 
budget  have  been  reduced  by  about  900  mil- 
lion dollars  below  the  level  estimated  for  the 
present  fiscal  year.  The  policies  recom- 
mended in  the  budget  will  permit  further 
reductions  in  subsequent  years  as  the  cost  of 
some  of  the  extraordinary  postwar  programs 
continue  to  decline. 

To  achieve  these  reductions  we  must  con- 
tinue to  practice  rigid  economy.  At  the 
same  time,  it  would  be  self-defeating  to 
cripple  activities  which  are  essential  to  our 
national  strength.  It  will  require  wisdom 
and  courage  to  find  and  hold  fast  to  the 
course  of  wise  economy  without  straying  into 
the  field  of  foolish  budget  slashes. 

Second,  as  to  the  strength  and  growth  of 
our  national  economy. 

We  cannot  achieve  and  maintain  a  bal- 
anced budget  without  a  strong  and  prosper- 
ous economy.  A  recession  in  economic  ac- 
tivity would  call  for  increased  Government 
expenditures  at  the  same  time  that  revenues 
were  reduced,  thus  creating  greater  budget 
deficits. 

At  the  present  time,  the  economy  of  the 
United  States  is  growing,  and  we  have  every 


41-355—65- 


-11 


121 


[i8]    Jan.  23 


Public  Papers  of  the  Presidents 


reason  to  expect  it  to  continue  to  expand  if 
we  follow  the  right  policies.  It  is  largely 
the  task  of  private  business  to  achieve  this 
growth.  The  Government,  however,  can 
and  should  contribute  to  it.  Through  such 
cooperation,  national  employment  and  in- 
come will  grow.  This  will  result,  in  time, 
in  increasing  Government  revenues. 

Just  as  the  condition  of  our  national  econ- 
omy has  an  overriding  effect  upon  our  efforts 
to  balance  the  budget,  so  do  our  policies  for 
managing  the  Federal  budget  have  a  deci- 
sive effect  upon  the  national  economy. 
Drastic  reductions  in  Federal  expenditures 
in  the  wrong  places  and  at  the  wrong  time 
could  have  serious  disruptive  effects  through- 
out our  economy. 

Government  revenue  policies  are  as  im- 
portant in  our  economy  as  Government  ex- 
penditure policies.  Events  of  the  last  few 
years  have  proved  that  our  economy  can 
grow  and  prosper,  and  that  employment, 
production  and  incomes  can  increase,  at  the 
same  time  that  individuals  and  businesses 
are  paying  taxes  which  are  high  by  prewar 
standards.  However,  taxes  can  and  do  have 
an  important  effect  upon  business  conditions 
and  economic  activity.  It  should  be  our 
constant  objective  to  improve  our  tax  system 
so  that  the  required  revenues  can  be  obtained 
without  impairing  the  private  initiative  and 
enterprise  essential  to  continued  economic 
growth. 

We  should  always  keep  in  mind  that  the 
maintenance  of  a  sound  fiscal  position  on 
the  part  of  the  Government  is  a  long-range 
matter.  Nothing  could  be  more  foolhardy 
than  to  attempt  to  bring  about  a  balanced 
budget  in  195 1  by  measures  that  would  make 
it  impossible  to  maintain  a  balanced  budget 
in  the  following  years. 

Third,  as  to  changes  in  the  tax  laws. 

If,  over  the  next  few  years,  we  hold  ex- 
penditures to  the  minimum  necessary  levels 
and  at  the  same  time  follow  policies  which 


contribute  to  stable  economic  growth,  we 
can  look  forward  to  steady  progress  toward 
a  balanced  budget.  Nevertheless,  we  should 
not  rely  only  upon  budgetary  economy  and 
upon  economic  expansion  to  produce  a  bal- 
anced budget.  We  should  accelerate  the 
attainment  of  this  objective  by  changes  in 
the  tax  laws.  Drastic  increases  in  tax  rates, 
just  as  in  the  case  of  drastic  cuts  in  essential 
expenditures,  might  prove  to  be  self-defeat- 
ing. Our  primary  objective  should  be  to 
improve  and  strengthen  our  revenue  system 
for  the  long  run. 

Under  these  circumstances,  I  am  now  rec- 
ommending a  number  of  important  revisions 
in  our  present  tax  system,  to  reduce  present 
inequities,  to  stimulate  business  activity,  and 
to  yield  about  one  billion  dollars  in  net  addi- 
tional revenue. 

In  making  changes  in  the  tax  laws,  we 
should  be  sure  they  move  toward,  and  not 
away  from,  the  major  principles  of  a  good 
tax  system.  Our  tax  structure  should  rec- 
ognize differences  in  ability  to  pay;  it  should 
provide  incentives  to  new  undertakings  and 
the  expansion  of  existing  businesses;  it 
should  support  the  objective  of  increasing 
opportunities  for  all  our  citizens  to  obtain  a 
better  standard  of  living;  and  it  should 
rigidly  exclude  unfairness  or  favoritism. 

Over  the  years,  we  have  made  important 
progress  in  building  a  good  tax  system. 
However,  much  remains  to  be  done.  There 
is  need  further  to  improve  the  distribution 
of  the  tax  load  to  make  it  conform  better 
with  tax  paying  ability.  There  is  need  to 
reduce  taxes  which  burden  consumption 
and  handicap  particular  businesses.  More- 
over, we  should  eliminate  tax  loopholes 
which  enable  some  few  to  escape  their  share 
of  the  cost  of  government  at  the  expense  of 
the  rest  of  the  American  people. 

Many  of  the  important  and  desirable  tax 
revisions  which  should  be  made  must  be 
postponed  until  the  budget  situation  im- 


122 


Harry  S.  Truman,  ig^o 


Jan.  23    [18] 


proves.  Nevertheless,  a  number  of  those 
steps  can  and  should  be  taken  now. 

First,  I  recommend  that  excise  taxes  be 
reduced  to  the  extent,  and  only  to  the  extent, 
that  the  resulting  loss  in  revenue  is  replaced 
by  revenue  obtained  from  closing  loopholes 
in  the  present  tax  lav^s. 

The  excise  taxes  are  still  at  substantially 
their  wartime  levels.  Some  are  depressing 
certain  lines  of  business.  Some  burden  con- 
sumption and  fall  with  particular  weight  on 
low-income  groups.  Still  others  add  to  the 
cost  of  living  by  increasing  business  costs. 

Since  we  are  limited  in  the  amount  of  re- 
duction we  can  now  afford,  we  should  choose 
for  reduction  those  taxes  which  have  the 
most  undesirable  effects.  I  believe  that  re- 
ductions are  most  urgently  needed  in  the 
excise  taxes  on  transportation  of  property, 
transportation  of  persons,  long-distance  tele- 
phone and  telegraph  communications,  and 
the  entire  group  of  retail  excises,  including 
such  items  as  toilet  preparations,  luggage, 
and  handbags. 

If  these  revisions  are  made,  we  will  have 
reduced  the  most  serious  inequities  of  our 
present  excise  taxes.  We  should  go  further 
just  as  quickly  as  budgetary  conditions  per- 
mit. At  present,  however,  we  should  reduce 
excises  only  to  the  extent  that  the  loss  in 
revenue  can  be  recouped  by  eliminating  the 
tax  loopholes  which  now  permit  some  groups 
to  escape  their  fair  share  of  taxation. 

The  continued  escape  of  privileged  groups 
from  taxation  violates  the  fundamental 
democratic  principle  of  fair  treatment  for 
all,  and  undermines  public  confidence  in  the 
tax  system.  While  few  of  these  loopholes 
by  themselves  involve  major  revenue  losses, 
collectively  they  result  in  the  loss  of  many 
hundreds  of  millions  of  dollars  every  year. 

I  wish  to  call  the  attention  of  the  Con- 
gress to  the  more  important  of  these  loop- 
holes. While  some  of  them  are  of  long 
standing,  their  injustice  has  been  aggravated 


as  the  taxes  assessed  against  the  rest  of  the 
population  have  been  increased.  A  tax  con- 
cession to  a  favored  few  is  always  unfair, 
but  it  becomes  a  gross  injustice  against  the 
rest  of  the  population  when  tax  rates  are 
high.  The  case  for  the  elimination  of  these 
inequities  would  be  strong  even  if  there  were 
no  need  for  replacement  revenue.  It  is  com- 
pelling when  excise  relief  depends  on  it. 

I  know  of  no  loophole  in  the  tax  laws  so 
inequitable  as  the  excessive  depletion  ex- 
emptions now  enjoyed  by  oil  and  mining 
interests. 

Under  these  exemptions,  large  percentages 
of  the  income  from  oil  and  mining  properties 
escape  taxation,  year  after  year.  Owners  of 
mines  and  oil  wells  are  permitted,  after  de- 
ducting all  costs  of  doing  business,  to  exclude 
from  taxation  on  account  of  depletion  as 
much  as  half  of  their  net  income.  In  the 
case  of  ordinary  businesses,  investment  in 
physical  assets  is  recovered  tax-free  through 
depreciation  deductions.  When  the  original 
investment  has  been  recovered,  a  deprecia- 
tion deduction  is  no  longer  allowed  under 
the  tax  laws.  In  the  case  of  oil  and  mining 
businesses,  however,  the  depletion  exemption 
goes  on  and  on,  year  after  year,  even  though 
the  original  investment  in  the  property  has 
already  been  recovered  tax  free,  not  once  but 
many  times  over. 

Originally  introduced  as  a  moderate  meas- 
ure to  stimulate  essential  production  in  the 
first  World  War,  this  special  treatment  has 
been  extended  during  later  years.  At  the 
present  time,  these  exemptions,  together  with 
another  preferential  provision  which  per- 
mits oil-well  investment  costs  to  be  imme- 
diately deducted  from  income  regardless  of 
source,  are  allowing  individuals  to  build  up 
vast  fortunes,  with  litde  more  than  token 
contributions  to  tax  revenues. 

For  example,  during  the  five  years  1943  to 
1947,  during  which  it  was  necessary  to  col- 
lect an  income  tax  from  people  earning  less 


123 


[i8]    Jan.  23 


Public  Papers  of  the  Presidents 


than  $20  a  week,  one  oil  operator  was  able, 
because  of  these  loopholes,  to  develop  prop- 
erties yielding  nearly  $5,000,000  in  a  single 
year  without  payment  of  any  income  tax. 
In  addition  to  escaping  the  payment  of  tax 
on  his  large  income  from  oil  operations,  he 
was  also  able  through  the  use  of  his  oil  tax 
exemptions  to  escape  payment  of  tax  on 
most  of  his  income  from  other  sources.  For 
the  five  years,  his  income  taxes  totaled  less 
than  $100,000,  although  his  income  from 
non-oil  sources  alone  averaged  almost 
$1,000,000  each  year. 

This  is  a  shocking  example  of  how  pres- 
ent tax  loopholes  permit  a  few  to  gain  enor- 
mous wealth  without  paying  their  fair  share 
of  taxes. 

I  am  well  aware  that  these  tax  privileges 
arc  sometimes  defended  on  the  grounds  that 
they  encourage  the  production  of  strategic 
minerals.  It  is  true  that  we  wish  to  encour- 
age such  production.  But  the  tax  bounties 
distributed  under  present  law  bear  only  a 
haphazard  relationship  to  our  real  need  for 
proper  incentives  to  encourage  the  explora- 
tion, development  and  conservation  of  our 
mineral  resources.  A  forward-looking  re- 
sources program  does  not  require  that  we 
give  hundreds  of  millions  of  dollars  annually 
in  tax  exemptions  to  a  favored  few  at  the 
expense  of  the  many. 

Some  tax  loopholes  have  also  been  de- 
veloped through  the  abuse  of  the  tax  exemp- 
tion accorded  educational  and  charitable 
organizations.  It  has  properly  been  the 
policy  of  the  Federal  Government  since  the 
beginning  of  the  income  tax  to  encourage 
the  development  of  these  organizations. 
That  policy  should  not  be  changed.  But  the 
few  glaring  abuses  of  the  tax  exemption 
privilege  should  be  stopped. 

Responsible  educational  leaders  share  in 
the  concern  about  the  fact  that  an  exemption 
intended  to  protect  educational  activities  has 
been  misused  in  a  few  instances  to  gain  com- 


petitive advantage  over  private  enterprise 
through  the  conduct  of  business  and  indus- 
trial operations  entirely  unrelated  to  educa- 
tional activities. 

There  are  also  instances  where  the  exemp- 
tion accorded  charitable  trust  funds  has  been 
used  as  a  cloak  for  speculative  business  ven- 
tures, and  the  funds  intended  for  charitable 
purposes,  buttressed  by  tax  exemption,  have 
been  used  to  acquire  or  retain  control  over 
a  wide  variety  of  industrial  enterprises. 

These  and  other  unintended  advantages 
can  and  should  be  removed  without  jeop- 
ardizing the  basic  purposes  of  those  orga- 
nizations which  should  righdy  be  aided  by 
tax  exemption. 

A  problem  exists  also  with  respect  to  life 
insurance  companies.  The  tax  laws  have 
always  accorded  favorable  treatment  to  the 
income  received  by  individuals  from  life 
insurance  policies  and  have  made  special 
provision  for  the  taxation  of  life  insurance 
companies.  As  a  result  of  a  quirk  in  the 
present  law,  however,  life  insurance  com- 
panies have  unintentionally  been  relieved  of 
income  taxes  since  1946.  This  anomalous 
situation  has  meant  that  neither  the  com- 
panies nor  their  policyholders  have  paid 
taxes  on  more  than  1.5  billion  dollars  of 
investment  income  per  year,  derived  from 
productive  assets  worth  about  60  billion 
dollars. 

I  understand  that  the  Committee  on  Ways 
and  Means  of  the  House  of  Representatives 
has  already  undertaken  to  correct  this  situa- 
tion for  the  past  years.  I  urge  that  steps  also 
be  taken  to  develop  a  permanent  system  for 
the  taxation  of  life  insurance  companies 
which  will  remove  the  inequities  of  under- 
taxation  in  this  field  without  impairing  the 
ability  of  individuals  to  acquire  life  insurance 
protection. 

In  addition  to  the  tax  loopholes  I  have 
described,  there  are  a  number  of  others 
which  also  represent  inequities,  and  should 


124 


Harry  S.  Truman,  ig^o 


Jan.  23    [18] 


be  closed.  Most  of  these  permit  individuals, 
by  one  device  or  another,  to  take  unfair  ad- 
vantage of  the  difference  between  the  tax 
rates  on  ordinary  income  and  the  lower  tax 
rates  on  capital  gains.  As  one  example, 
under  present  law  producers  of  motion  pic- 
tures, and  their  star  players,  have  attempted 
to  avoid  taxes  by  creating  temporary  corpora- 
tions which  are  dissolved  after  making  one 
film.  By  this  device,  their  income  from 
making  the  film,  which  ought  to  be  taxed 
at  the  individual  income  tax  rates,  would  be 
taxed  only  at  the  capital  gains  rate.  Thus, 
they  might  escape  as  much  as  two-thirds  of 
the  tax  they  should  pay. 

All  these  loopholes  have  been  under  joint 
study  by  the  Treasury  Department  and  the 
staff  of  the  Congressional  Joint  Committee 
on  Internal  Revenue  Taxation.  A  practical 
program  which  would  go  far  toward  closing 
these  loopholes  can  be  enacted  during  the 
present  session  of  the  Congress.  This  would 
be  a  substantial  step  toward  increasing  the 
fairness  of  our  tax  system,  and  should  add 
several  hundred  million  dollars  to  its  yield — 
sufficient  revenue  to  permit  substantial  excise 
tax  reduction  where  it  is  most  urgently 
needed. 

I  wish  to  make  it  very  clear  that  I  could 
not  approve  excise  tax  reductions  unless  they 
were  accompanied  by  provision  for  replace- 
ment of  the  revenue  lost,  because  I  am  con- 
vinced that  sound  fiscal  policy  will  not 
permit  a  weakening  of  our  tax  system  at  this 
time.  Under  present  conditions,  we  cannot 
afford  to  reduce  excise  taxes  first,  in  the 
hope  that  action  will  be  taken  later  to  make 
up  for  the  loss  in  revenue. 

Second,  I  recommend  that  the  Congress 
enact  legislation  to  provide  one  billion  dol- 
lars in  additional  revenue,  by  revising  and 
improving  the  estate  and  gift  tax  and  the 
corporation  tax  laws.  I  believe  that,  under 
present  economic  conditions,  this  amount  of 
additional  revenue  represents  a  proper  bal- 


ance between  the  objective  of  balancing  the 
budget  as  soon  as  possible  and  the  objective 
of  coordinating  tax  adjustments  with  the 
requirements  of  continued  prosperity. 

A  substantial  part  of  the  additional  rev- 
enue should  be  obtained  from  revision  of  the 
estate  and  gift  tax  laws. 

The  Revenue  Act  of  1948  reduced  the 
yield  of  the  estate  and  gift  taxes  by  one-third, 
or  nearly  300  million  dollars.  Even  before 
that  Act,  estate  and  gift  tax  yields  were  out 
of  line  with  other  revenues,  and  that  Act 
made  the  situation  worse. 

In  originally  enacting  the  estate  tax  in 
19 1 6,  the  Congress  pointed  out  that  "our 
revenue  system  should  be  more  evenly  and 
equitably  balanced"  and  that  a  "larger  por- 
tion of  our  necessary  revenues"  should  be 
collected  from  the  "inheritances  of  those 
deriving  most  protection  from  the  Govern- 
ment." Our  estate  and  gift  tax  laws  at 
present  fall  far  short  of  this  objective.  They 
now  produce  less  than  2  per  cent  of  internal 
revenues,  compared  with  7  per  cent  ten  years 
ago.  To  the  extent  that  these  taxes  remain 
too  low,  the  remainder  of  our  tax  structure 
must  bear  a  disproportionate  load. 

The  low  yield  from  the  estate  and  gift 
taxes  is  due  to  serious  weaknesses  in  the 
present  law. 

These  weaknesses  include  excessive  ex- 
emptions, unduly  low  effective  rates  on  most 
estates,  and  the  fact  that  the  law  as  written 
favors  large  estates  over  smaller  ones,  and 
leaves  substantial  amounts  of  wealth  com- 
pletely beyond  the  reach  of  the  tax  laws. 
Large  fortunes  may  be  transmitted  from  one 
generation  to  another  free  of  estate  or  gift 
tax  through  the  use  of  life  estates.  By  this 
means,  vast  accumulations  of  wealth  may 
completely  escape  tax  over  several  genera- 
tions. 

Furthermore,  the  present  law  affords  ex- 
cessive opportunities  for  tax  reduction  by 
splitting  between  the  gift  and  estate  taxes 


125 


[i8]    Jan.  23 


Public  Papers  of  the  Presidents 


the  total  amount  of  wealth  transferred  by  an 
individual.  This  makes  the  tax  liability 
depend,  not  upon  the  amount  of  wealth 
which  an  individual  leaves  to  his  family,  but 
upon  the  manner  in  which  he  arranges  the 
disposition  of  his  wealth.  If  a  man  leaves 
his  estate  of  $300,000  at  death,  one-half  to 
his  wife  and  one-half  to  his  three  children, 
an  estate  tax  of  $17,500  must  be  paid.  If 
his  equally  well-to-do  neighbor  gives  away 
$180,000  to  his  wife  and  three  children  over 
a  5-year  period  and  leaves  them  the  other 
$120,000  at  death,  no  estate  or  gift  tax  what- 
ever is  paid.  This  difference  in  tax,  whether 
it  depends  upon  fortuitous  circumstances  or 
the  caliber  of  legal  counsel,  is  obviously 
unwarranted. 

To  strengthen  the  estate  and  gift  tax  laws, 
several  steps  are  necessary.  The  laws  con- 
cerning the  taxation  of  transfers  by  gift  and 
by  bequest,  by  outright  disposition  and 
through  life  estates,  need  to  be  coordinated 
to  provide  uniform  treatment  and  a  base  for 
more  effective  taxation.  In  addition,  the 
present  exemptions  should  be  reduced  and 
the  rates  should  be  revised.  These  changes 
will  not  only  bring  in  more  revenue,  but  they 
will  also  improve  the  fairness  of  the  estate 
and  gift  tax  laws  and  bring  these  taxes  nearer 
to  their  proper  long-term  place  in  our  tax 
system. 

The  rest  of  the  additional  revenue  should 
be  obtained  from  adjustments  in  the  corpo- 
ration income  tax.  At  the  same  time,  certain 
improvements  should  be  made  in  this  tax. 

I  recommend  a  moderate  increase  in  the 
tax  rate  applicable  to  that  part  of  a  corpora- 
tion's income  which  is  in  excess  of  $50,000. 
At  the  same  time,  I  recommend  that  the  tax 
rate  on  corporate  income  between  $25,000 
and  $50,000,  which  is  now  taxed  at  the  ex- 
cessively high  "notch"  rate  of  53  per  cent,  be 
reduced  to  the  same  rate  that  applies  above 
$50,000. 


These  changes  in  the  tax  rate  structure 
would  go  far  toward  removing  the  handicaps 
which  the  present  law  places  upon  the  expan- 
sion of  small  corporations.  The  removal  of 
the  excessive  "notch"  rate  would  reduce  the 
taxes  paid  by  medium-sized  corporations 
whose  continued  growth  is  so  essential  to  the 
dynamic  expansion  of  our  economy.  The 
existing  favorable  tax  rates  for  small  corpo- 
rations with  incomes  below  $25,000  would 
be  retained.  The  tax  increase  would  be  con- 
fined to  less  than  one-tenth  of  all  corpora- 
tions. 

Furthermore,  I  recommend  that  the  loss 
carry-forward  provision  be  extended  from 
two  to  five  years  to  provide  more  scope  for 
offsetting  losses  of  bad  years  against  profits 
of  subsequent  years.  This  extension  will  give 
increased  incentive  to  business  investment 
affected  by  uncertain  profit  expectations.  It 
will  be  particularly  helpful  to  new  businesses 
which,  under  the  present  provision  permit- 
ting losses  to  be  carried  forward  only  two 
years,  may  be  required  to  pay  taxes  over  a 
period  of  several  years  during  which  they 
actually  suffer  a  net  loss. 

At  the  same  time  that  we  make  these 
changes  in  the  tax  laws  to  stimulate  invest- 
ment at  home,  we  should  make  certain 
changes  in  the  tax  laws  concerning  income 
derived  from  foreign  investments  and  per- 
sonal services  abroad.  This  would  provide 
significant  support  to  our  efforts  to  extend 
financial  and  technical  assistance  to  under- 
developed regions  of  the  world. 

Among  the  steps  which  should  be  taken 
at  this  time  are  to  postpone  the  tax  on  cor- 
porate income  earned  abroad  until  it  is 
brought  home,  to  extend  and  generalize  the 
present  credit  for  taxes  paid  abroad,  and  to 
liberalize  the  foreign  residence  requirement 
for  exemption  of  income  earned  abroad. 
These  changes,  together  with  the  safeguards 
for  our  investors  which  we  are  in  the  process 


126 


Harry  S.  Truman,  i^^o 


Jan.  24    [19] 


of  negotiating  with  foreign  governments, 
will  provide  real  stimulation  for  the  expan- 
sion of  United  States  investment  abroad. 


The  tax  program  I  am  recommending  is 
designed  to  strengthen  our  tax  system  so  that 
it  will  yield  revenues  sufficient  to  balance 
expenditures  as  they  are  further  reduced  over 
the  next  several  years,  and  to  provide  some 
surplus  for  debt  reduction.  Because  of  the 
time  lag  in  collecting  taxes  after  their  enact- 
ment, these  recommendations  will  not  result 
in  any  substantial  increase  in  receipts  in  the 
fiscal  year  195 1,  but  they  will  result  in  larger 
revenues  in  subsequent  years  and,  at  the 
same  time,  substantially  improve  the  struc- 
ture of  our  tax  system  for  the  long  run. 

A  sharp  increase  in  taxes  under  present 
economic  conditions  would  be  unwise. 
However,  in  line  with  the  policy  of  gearing 


changes  in  revenue  laws  to  the  needs  of  our 
economy,  I  would  not  hesitate,  if  strong 
inflationary  or  deflationary  forces  should 
appear,  to  support  the  use  of  all  measures 
necessary  to  meet  the  situation,  including 
more  pronounced  adjustment  of  tax  rates  up- 
ward or  downward,  as  the  case  might  be. 
We  have  come  through  the  war  and  a 
difficult  transition  period  with  the  financial 
strength  of  our  Government  maintained  and 
an  economy  producing  far  above  prewar 
levels.  We  should  continuously  seek  to  sus- 
tain and  improve  these  indispensable  foun- 
dations for  progress.  The  tax  program  I  am 
recommending  is  an  important  and  necessary 
means  to  that  end. 

Harry  S.  Truman 

note:  On  September  23,   1950,  the  President  ap- 
proved the  Revenue  Act  of  1950   (64  Stat.  906). 


19    Statement  by  the  President  on  the  New  75-Cent 
Minimum  Wage  Rate.    January  24,  1950 


AT  MIDNIGHT  tonight  the  lot  of  a  great 
many  American  workers  will  be  substan- 
tially improved. 

Today  the  minimum  wage  is  40  cents  an 
hour.  Tomorrow  the  new  75-cent  mini- 
mum rate  goes  into  effect  for  the  22  million 
workers  who  are  protected  by  the  Fair  Labor 
Standards  Act,  our  Federal  wage-hour  law. 
Another  amendment  to  that  law  will  provide 
gready  increased  protection  for  our  young 
boys  and  girls  against  dangerous  industrial 
work. 

This  legislation,  passed  by  the  8ist  Con- 
gress at  its  first  session,  is  an  important  addi- 
tion to  the  laws  we  live  by.  It  is  a  measure 
dictated  by  social  justice.  It  adds  to  our 
economic  strength.  It  is  founded  on  the 
belief  that  full  human  dignity  requires  at 
least  a  minimum  level  of  economic  sufficiency 
and  security. 


For  many  generations  we  have  recognized 
that  there  are  legitimate  roles  for  the  Gov- 
ernment to  play  in  protecting  our  people 
from  economic  injustice  and  hardship.  Our 
Founding  Fathers  explicidy  stated  this.  In 
the  Preamble  to  the  Constitution  of  the 
United  States,  it  is  declared  that  this  Gov- 
ernment was  established,  among  other  rea- 
sons, to  "promote  the  general  welfare." 

Until  1933  ^^  objective  of  providing  for 
the  general  welfare  had  been  implemented 
primarily  through  State  and  Federal  legisla- 
tion to  foster  and  protect  business  enterprise. 
There  had  been  few  successful  attempts  be- 
fore 1933  to  protect  our  people  as  individuals. 
Even  the  first  Federal  attempt  to  provide  a 
floor  under  wages  in  various  industries  failed 
when  the  National  Industrial  Recovery  Act 
was  declared  unconstitutional  in  1935. 

We   felt,   however,   that   a    government 


127 


[ip]    Jan.  24 


Public  Papers  of  the  Presidents 


which  could,  for  example,  protect  business 
from  the  unfair  competition  of  monopolistic 
practices  was  not  powerless  to  protect  the 
individual  from  the  social  and  economic 
evils  of  low  wages.  Therefore,  we  enacted, 
in  1938,  a  Federal  wage-hour  law.  In  so 
doing,  we  declared  our  purpose  to  eliminate 
from  the  channels  of  commerce  all  competi- 
tion based  on  labor  practices  detrimental  to 
the  health  and  well-being  of  the  Nation's 
workers. 

Three  basic  provisions  were  written  into 
the  statute  to  achieve  that  goal.  The  law 
set  a  firm  floor  under  wages.  This  meant 
that  a  man  would  no  longer  need  relief 
money  for  food  after  he  worked  a  full  week. 
Then  the  law  encouraged  the  spreading  of 
employment  by  requiring  overtime  pay  after 
a  man  worked  40  hours.  No  longer  would 
one  man  toil  60  or  70  hours  a  week  while 
another  man  was  looking  for  a  job.  The 
law  also  sought  to  prevent  the  employment 
of  boys  and  girls  under  16  in  industry.  No 
longer  was  the  world  of  tomorrow  to  be 
endangered  by  impairment  of  the  health 
and  curtailment  of  the  educational  oppor- 
tunities of  the  youth  of  today. 

This  law  was  a  great  achievement.  It  had 
a  highly  beneficial  effect  upon  our  entire 
economy.  Despite  the  prophesies  of  dis- 
aster, this  law  did  not  hurt  business.  On 
the  contrary,  it  helped  all  segments  of  our 
population.  When  the  test  came,  employers 
who  had  feared  they  could  not  stay  in  busi- 
ness under  the  law  found,  in  fact,  that  they 
could  successfully  meet  its  requirements. 
The  law  added  to  the  purchasing  power  of 
our  lowpaid  workers,  and  by  encouraging 
the  spreading  of  work  put  more  people  on 


payrolls.  This  law  thus  gave  great  impetus 
to  the  revival  of  our  economy. 

As  our  economy  changed  and  developed, 
however,  it  became  apparent  that  the  floor 
we  had  placed  under  wages  would  no  longer 
serve  as  real  protection  to  our  workers  or  to 
those  employers  who  were  paying  fair  wages. 
As  I  stated  to  the  Congress,  the  40-cent  mini- 
mum wage  became  obsolete. 

Ours  is  a  growing  society.  We  cannot 
afford  to  stand  still,  and  we  cannot  afford  to 
have  our  legislation  become  outmoded. 
Consequently,  in  1949  we  reexamined  and 
reappraised  the  Federal  wage-hour  law  in 
the  light  of  the  1 1  years'  experience  we  had 
had  with  it  and  in  the  context  of  our  present 
$250  billion  national  economy.  The  amend- 
ments to  the  act,  which  go  into  effect  at 
midnight  tonight,  constitute  our  moderniza- 
tion of  this  law. 

As  now  amended,  the  Fair  Labor  Stand- 
ards Act  is  a  good  law.  But  no  law  can  be 
drafted  which  will  not  need  reexamination 
in  the  light  of  subsequent  developments. 
I  have  therefore  asked  the  Secretary  of  Labor 
to  keep  me  informed  on  the  operation  of  the 
new  law.  I  am  confident  that  our  employers 
and  workers  will  find  compliance  with  this 
law  even  easier  than  compliance  with  the 
original  statute  in  1938.  I  look  forward  to 
great  and  lasting  benefits  from  this  legisla- 
tion. 

Our  progress  in  this  field  points  the  way 
for  our  future  action.  We  shall  not  relax  in 
our  efforts  to  provide  a  better  life  for  all  our 
people. 

note:  The  Fair  Labor  Standards  Amendments  of 
1949  was  approved  on  October  26,  1949  (63  Stat. 
910).  For  the  President's  statement  upon  signing 
the  bill  see  1949  volume,  this  series,  Item  239. 


128 


Harry  S.  Truman,  jgp 


Jan.  26    [21] 


20    Exchange  of  Messages  With  President  Prasad  of  India. 
January  26,  1950 


ON  THIS  memorable  day  in  India's  history, 
I  send  my  greetings  and  best  wishes  and 
those  of  the  people  of  the  United  States  to 
you,  and  through  you  to  the  people  of  the 
Union  of  India.  The  establishment  of  the 
sovereign  independent  republic  of  India 
within  the  Commonwealth  represents  a  final 
step  in  India's  political  transition  which 
closely  parallels  the  political  evolution  of  our 
own  country.  Because  of  our  traditional 
sympathy  with  India,  the  people  of  the 
United  States  are  particularly  happy  to  send 
expressions  of  good  will  on  this  occasion. 

The  inauguration  of  India's  new  form  of 
government  and  of  its  new  Constitution,  and 
the  assumption  of  office  by  the  first  Presi- 
dent, constitute  an  auspicious  beginning  of 
the  second  half  of  the  Twentieth  Century. 
May  the  future  of  the  new  republic,  func- 
tioning under  its  democratic  Constitution, 
be  characterized  by  peace,  prosperity  and 
good  fortune. 

Harry  S.  Truman 


[His  Excellency,  The  President  of  the  Union  of 
India,  New  Delhi] 

note:  President  Prasad's  message  follows: 

On  behalf  of  the  people  of  the  Republic  of  India, 
I  desire  to  thank  you,  Mr.  President,  and  through 
you  the  people  of  the  United  States  of  America  for 
your  greetings  and  wishes  on  this  historic  occasion. 
The  inauguration  of  the  Republic  is  a  conspicuous 
landmark  in  the  long  and  eventful  history  of  our 
country  in  the  struggle  for  our  independence. 

We  have  always  had  the  sympathy  and  under- 
standing of  the  people  of  the  United  States  of 
America.  During  the  last  two  years  the  relations 
between  our  two  countries  have  become  closer 
through  exchange  of  Ambassadors  and  the  visit  of 
my  Prime  Minister  last  autumn  to  the  United  States. 
As  first  President  of  the  Republic  of  India  it  shall 
be  my  constant  endeavour  to  uphold  the  traditions 
of  democratic  government  and  to  foster,  together 
with  other  like-minded  nations,  the  ideals  of  peace 
and  moral  law  that  we  have  inherited  from  the 
Father  of  our  Nation,  Mahatma  Gandhi.  In  this 
task,  I  am  sure  we  can  count  on  the  cooperation  of 
the  Government  and  people  of  the  United  States, 
whose  principles  of  individual  liberty  and  the  rule 
of  law  are  reflected  in  the  provisions  of  our  own 
Constitution. 

Rajendra  Prasad 


21    Remarks  to  the  Women's  Patriotic  Conference  on 
National  Defense.    January  26,  1950 


Madam  President  and  ladies  and  gentlemen: 
It  is  a  very  great  pleasure  for  me  to  have 
the  privilege  of  being  here  tonight.  I  wish 
I  could  have  been  here  for  the  v^hole  eve- 
ning, but  this  has  been  quite  a  busy  day  for 
me.  Every  day  is,  for  that  matter.  You 
know,  I  spend  most  of  my  time  urging  peo- 
ple to  do  what  they  ought  to  do  without 
being  urged.  That  is  what  is  called  the 
power  of  the  President.  His  powers  are 
mostly  public  relations.  He  is  elected  the 
President  of  the  United  States,  and  he  is  the 
only  member  of  the  Government  who  is 
elected  at  large,  except  the  Vice  President; 


and  the  Vice  President  is  elected  along  with 
him. 

But  the  Vice  President,  as  Mr.  Dawes  once 
said,  has  only  two  duties:  one  is  to  preside 
over  the  Senate,  and  the  other  one  is  to  in- 
quire about  the  President's  health.  The 
Vice  President  and  I  spent  many  happy 
hours  in  the  Senate,  and  he  presides  over  the 
Senate,  and  he  is  not  a  bit  interested  in  the 
health  of  the  President. 

I  had  an  experience  today  that  is  rather 
unusual.  One  of  my  closest  friends,  the 
mayor  of  Independence,  Mo.,  passed  away 
on  Tuesday  night  very  suddenly,  from  a 


41_3,5,5_65- 


-12 


129 


[2i]    Jan.  26 


Public  Papers  of  the  Presidents 


heart  attack.  He  and  I  were  raised  together 
in  our  hometown.  He  is  5  or  6  years 
younger  than  I  am — or  was.  We  were  in 
the  First  World  War  together.  He  started 
out  as  the  commanding  officer  of  C  Battery 
from  Independence.  At  Camp  Doniphan  he 
was  made  commander  of  A  Battery.  After 
that  he  was  made  regimental  adjutant  of  my 
regiment  of  field  artillery  and  he  was  in  that 
position  until  the  war  was  over. 

He  has  been  mayor  of  Independence  since 
1924,  when  he  was  elected  to  that  office.  He 
was  elected  to  that  office  when  I  was  in  my 
first  elective  oflSce.  The  returned  soldiers 
in  that  town,  with  my  cooperation  and  help, 
made  him  mayor.  He  was  a  great  mayor  of 
that  great  city.  And  I  was  most  anxious  to 
be  present  to  pay  my  respects  to  his  passing, 
but  conditions  were  such  here  in  Washing- 
ton that  I  had  to  stay  here  and  discuss  things 
that  aflected  the  whole  Nation  all  morning 
this  morning. 

And  then  this  afternoon,  the  daughter  of 
another  one  of  my  closest  friends  was  mar- 
ried, and  I  was  present  at  that  ceremony. 
That  young  lady  I  remember  when  she  was 
like  this — along  with  my  daughter.  She  is 
younger  than  my  daughter,  but  I  won't  give 
away  her  age. 

That  brings  home  to  me  that  here  are  the 
young  people  ready  to  take  up  for  the  coun- 
try, and  here  are  those  of  us  who  have  passed 
the  threescore  mark,  passing  on  to  the  next 
world,  leaving  it  to  the  younger  people. 

I  have  but  one  ambition  as  President  of 
the  United  States,  and  that  is  to  see  peace  in 
the  world,  and  a  working,  efficient  United 
Nations  to  keep  the  peace  in  the  world. 
Then  I  shall  be  willing  to  do  what  my  mayor 
did,  pass  on  happily  so  that  some  able, 
younger  man  may  carry  on  the  work  neces- 
sary to  keep  this  Government  going. 

You  know  we  have  the  greatest  govern- 
ment in  the  world.  I  understand  that  this 
is  a  meeting  of  the  patriotic  women  of  the 


United  States.  Patriotic  means  "father," 
and  patriotic  means  that  you  are  working  to 
carry  on  for  the  benefit  of  your  father — 
carrying  on  for  the  benefit  of  your  country. 
And  when  you  carry  on  for  the  benefit  of 
the  only  country  in  the  world  whose  interest 
is  the  welfare  of  all  the  people  in  the  world, 
you  can't  help  but  do  what  is  right. 

There  is  no  difference  in  totalitarian  states, 
they  are  all  just  alike.  They  believe  in  gov- 
ernment for  the  few  and  not  for  the  welfare 
of  the  many.  Our  Government  is  founded 
on  the  theory  that  government  is  for  the 
welfare  of  the  whole  people  and  not  for  just 
a  few  at  the  top. 

I  believe  that  sincerely.  I  have  made  quite 
a  study  of  government.  I  have  had  quite  a 
lot  of  experience  in  governmental  affairs. 
In  fact,  I  have  been  in  it  for  about  30  years, 
more  or  less,  and  my  viewpoint  has  not 
changed. 

I  think  the  Constitution  of  the  United 
States  is  the  greatest  document  of  govern- 
ment that  the  history  of  the  world  has  ever 
seen,  and  I  expect  to  devote  the  rest  of  my 
life,  if  the  Lord  is  good  to  me,  to  upholding 
and  supporting  that  article  of  government. 

When  we  do  that,  we  will  support  the 
United  Nations  and  we  will  support  the 
welfare  of  all  the  people  in  the  world.  And 
eventually  we  will  have  permanent  peace. 
That  is  all  I  live  for. 

Thank  you  very  much. 

note:  The  President  spoke  at  10  p.m.  at  the  Statler 
Hotel  in  Washington.  His  opening  words  "Madam 
President"  referred  to  Mrs.  Norman  Sheehe,  national 
president  of  the  American  Legion  Auxiliary.  In 
the  course  of  his  remarks  he  referred  to  Roger  T. 
Sermon,  former  Mayor  of  Independence,  Mo.,  and 
Edith  Cook  (Drucie)  Snyder,  daughter  of  the  Secre- 
tary of  the  Treasury  and  Mrs.  John  W.  Snyder,  who 
was  married  that  day  to  Maj.  John  E.  Horton, 
former  White  House  aide,  at  the  National  Cathedral 
in  Washington. 

The  conference  was  composed  of  35  different 
women's  patriotic  organizations  from  throughout 
the  United  States. 


130 


Harry  S.  Truman,  ig^o 


Jan.  27    [22] 


22    Statement  by  the  President  Upon  Issuing  Order  Providing  for  the 
Administration  of  the  Mutual  Defense  Assistance  Act. 
January  27,  1950 

the  $1  billion  in  funds  and  contract  author- 
ity made  available  for  assistance  in  the  North 
Adantic  area  can  only  be  utilized  after  I 
approve  recommendations  for  an  integrated 
defense  of  the  North  Adantic  area  made  by 
the  Council  and  the  Defense  Committee 
established  under  the  North  Atlantic  Treaty. 
Finally,  as  a  condition  precedent  to  the  fur- 
nishing of  assistance  to  any  country,  the 
recipient  must  have  entered  into  an  agree- 
ment v^^ith  the  United  States  embodying  cer- 
tain commitments  concerning  its  use. 

Prior  to  the  effective  date  of  the  law,  the 
Department  of  State  received  requests  for 
military  assistance  from  the  follov^ing  North 
Adantic  Treaty  countries:  Belgium,  Den- 
mark, France,  Italy,  Luxembourg,  the 
Netherlands,  Norway,  and  the  United 
Kingdom. 

The  North  Atlantic  Defense  Committee, 
at  its  meeting  in  Paris  on  December  i,  1949, 
agreed  unanimously  on  recommendations 
made  by  the  Military  Committee  for  the 
integrated  defense  of  the  North  Adantic 
area,  and  the  North  Atlantic  Council 
unanimously  approved  these  recommenda- 
tions on  January  6,  1950.  Subsequendy,  the 
Secretary  of  State  and  the  Secretary  of  De- 
fense recommended  that  I  approve  them. 

I  have  today  approved  these  recommenda- 
tions as  satisfying  the  pertinent  provisions  of 
the  Mutual  Defense  Assistance  Act  of  1949. 

I  have  approved  them  because  I  am  satis- 
fied that  they  provide  for  the  accomplish- 
ment of  an  integrated  defense  of  the  North 
Atlantic  area.  They  do  this  by  providing 
for  a  common  defense  based  on  the  coopera- 
tive use  of  national  military  resources  and 


DURING  the  past  2  years  the  free  nations 
of  Europe,  with  the  help  of  the  United  States, 
have  made  great  strides  toward  recovery. 
An  essential  element  in  this  program  has 
been  the  establishment  of  conditions  in 
Western  Europe  adequate  to  give  confidence 
to  the  people  and  to  insure  a  reasonable  pros- 
pect that  the  fruits  of  their  labor  would  not 
be  immediately  lost  in  the  event  of  aggres- 
sion. 

It  was  realized  that  an  adequate  secu- 
rity arrangement  could  be  organized  only 
if  the  free  nations  of  Western  Europe  joined 
together  and  strengthened  their  individual 
and  collective  defense  through  self-help  and 
mutual  aid  and  if  the  United  States  joined 
in  the  collective  enterprise.  In  recognition 
of  this  fact,  the  North  Atlantic  Treaty  was 
signed  on  April  4,  1949.  Further,  in  recog- 
nition of  the  concept  of  self-help  and  mutual 
aid  embodied  in  article  3  of  the  treaty,  I 
asked  the  Congress  to  authorize  the  furnish- 
ing of  military  assistance  to  certain  of  its 
signatories.  At  the  same  time  I  requested 
authorization  to  furnish  military  assistance 
to  certain  other  free  nations. 

In  response  to  my  request,  the  Congress 
passed  the  Mutual  Defense  Assistance  Act  of 
1949  on  October  6,  1949.  Under  its  pro- 
visions I  am  authorized  to  furnish  military 
assistance  to  certain  foreign  countries  which 
meet  the  specific  conditions  prescribed  in 
the  law.  In  the  case  of  parties  to  the  North 
Adantic  Treaty,  three  such  conditions  are 
imposed.  In  the  first  place,  to  be  eligible 
for  assistance,  the  country  must  have  re- 
quested such  assistance  prior  to  the  effective 
date  of  the  law.    Secondly,  $900  million  of 


131 


[22]    Jan.  27 


Public  Papers  of  the  Presidents 


on  individual  national  specialization.  They 
contain  agreement  that  these  resources,  in- 
cluding United  States  military  assistance, 
will  be  used  with  maximum  efficiency  and 
will  not  be  used  to  develop  separate  and 
unrelated  defenses. 

The  North  Atlantic  Treaty  is,  in  itself,  a 
deterrent  to  aggression.  I  believe  that  these 
recommendations  which  have  been  agreed 
to  by  the  governments  of  the  North  Atlantic 
Treaty  nations  constitute  a  major  achieve- 
ment under  the  treaty.  They  provide  fur- 
ther convincing  evidence  of  the  determina- 
tion of  these  nations  to  resist  aggression 
against  any  of  them  and  are  a  definite  indica- 
tion of  the  genuine  spirit  of  cooperation 
among  the  treaty  members. 

The  Mutual  Defense  Assistance  Act  of 
1949  also  provided  that  the  United  States 
should  conclude  agreements  with  the  coun- 
tries which  request,  and  are  to  receive,  mili- 
tary assistance.  Such  agreements  are  being 
signed  today  by  the  Secretary  of  State  and 
(representatives  of  Belgium,  Denmark, 
France,  Italy,  Luxembourg,  the  Netherlands, 
Norway,  and  the  United  Kingdom.  Their 
texts  will  be  made  public  and  they  will  be 


registered  with  the  United  Nations. 

In  view  of  these  significant  developments, 
I  have  today  also  made  formal  provision  for 
the  administration  of  the  Mutual  Defense 
Assistance  Act  by  issuing  an  Executive  order 
authorizing  the  Secretary  of  State  to  proceed 
with  the  program  in  consultation  with  the 
Secretary  of  Defense  and  the  Administrator 
for  Economic  Cooperation. 

These  developments  are  the  result  of  close 
cooperation  among  free  nations  which  in- 
tend to  remain  free.  They  are,  of  course, 
first  steps.  The  successful  implementation 
of  the  North  Atlantic  Treaty  will  require 
constant  and  continuing  effort  and  coopera- 
tion by  all  its  members.  Planning  for  de- 
fense cannot  be  static.  It  must  be  constantly 
reviewed  and  revised  in  the  light  of  chang- 
ing circumstances  and  it  must  be  flexible  to 
allow  for  maximum  coordination  of  effort  at 
all  times. 

note:  The  President  referred  to  Executive  Order 
10099  "Providing  for  the  Administration  of  the 
Mutual  Defense  Assistance  Act  of  1949"  (Jan.  27, 
1950;  3  CFR,  1 949-1 953  Comp.,  p.  295). 

The  Mutual  Defense  Assistance  Act  of  1949  v^^as 
approved  on  October  6,  1949  (63  Stat.  714).  For 
the  President's  statement  upon  signing  the  act  see 
1949  volume,  this  series,  Item  225. 


23    The  President's  News  Conference  of 
January  27,  1950 


THE  PRESIDENT,  [i.]  Well,  Mr.  ClifiEord 
will  quit  as  Special  Counsel  to  the  President 
on  Tuesday  night  at  midnight.  And  Mr. 
Murphy  will  be  sworn  in  the  next  morning, 
the  1st  of  February.  There  will  be  an  ex- 
change of  letters  available  for  you  when  you 
go  out,  all  mimeographed. 

That's  the  only  announcement  I  have  to 
make. 

[2.]  Q.  Mr.  President,  regardless  of  the 
outcome  in  the  upper  courts,  will  you  or  will 


you  not  turn  your  back  on  Alger  Hiss.f*  ^ 

THE  PRESIDENT.  No  commeut. 

Q.  Mr.  President 

THE  PRESIDENT.  That's  a  nice  question! 
What's  that? 


^On  January  25,  1950,  Alger  Hiss,  former  State 
Department  official,  v^^as  sentenced  by  a  United  States 
District  Court  to  5  years  in  a  Federal  penitentiary 
for  perjury.  According  to  the  New  York  Times, 
Secretary  of  State  Dean  Acheson  told  reporters  at 
his  news  conference  on  January  25,  "I  do  not  intend 
to  turn  my  back  on  Alger  Hiss." 


132 


Harry  S.  Truman,  ig^o 


Jan.  27    [23] 


[3.]  Q.  Do  you  favor  reducing  the  25 
percent  excise  tax  placed  on  cameras  and 
photographic  equipment,  which  kept  people 
from  buying  them  during  the  war? 

THE  PRESIDENT.  What's  that?  Didn't  you 
read  my  message  on  excise  taxes?  ^ 

Q.  It  is  not  mentioned. 

THE  PRESIDENT.  You  had  better  read  that 
message  over  again  and  your  question  will 
be  answered. 

Q.  It  was  not  mentioned  in  there,  sir. 

THE  PRESIDENT.  Well,  read  the  message 
over  again.   Read  it 

[4.]  Q.  Mr.  President,  is  there  any  point 
in  asking  any  other  Alger  Hiss  questions? 

THE  PRESIDENT.  No,  there  is  no  point  in 
asking  any  other  Alger  Hiss  questions. 

Q.  I  was  trying  to  get  away  from  that 

THE  PRESIDENT.  They  are  not  asked  with 
good  intent,  and  I  don't  intend  to  answer 
with  good  intent.     [Laughterl 

Q.  Does  that  go  for  "red  herring"  ques- 
tions? 

THE  PRESIDENT.  No  questious  on  that, 
either. 

Q.  Po  you  approve  Secretary  Acheson's 
statement? 

THE  PRESIDENT.  No  COmmCUt. 

[5.]  Q.  Mr.  President,  have  Mike 
Kinney  and  Barney  Dickman  been  in  to  see 
you?  ^ 

THE  PRESIDENT.  Mike  Kiuuey  is  sitting 
right  here  now.  I  saw  Barney  Dickman 
yesterday. 

Q.  Did  they  talk  about  the  Allison  candi- 
dacy? * 

THE  PRESIDENT.  Well,  they  probably  will, 
when  they  get  around  to  it,  because  that  is 
what  they  always  come  to  see  me  about. 

Q.  There  is  a  story  printed  in  St.  Louis 
that  you  are  rather  angry  with  Governor 

^  See  Item  18. 

®  Michael   Kinney,   Missouri   State   Senator,   and 
Barnard  F.  Dickman,  Postmaster  for  St.  Louis,  Mo. 
*See  Item  3  [8]. 


Forrest  Smith,  and  attribute  the  present 
political  agitation  in  the  State  against  the 
Allison  candidacy 

THE  PRESIDENT.  No.  No  word  of  tHith  in 
that  at  all.  I  had  a  telephone  conversation 
with  the  Governor  just  the  day  before  yes- 
terday, and  we  are  on  the  friendliest  of  terms. 

Q.  Was  it  on  the  Allison  matter? 

THE  PRESIDENT.  No,  it  was  on  another 
matter. 

[6.]  Q.  Mr.  President,  have  you  any 
comment  on  a  speech  made  in  New  York 
City  last  night  by  Senator  Byrd,^  in  which 
he  charged  that  the  administration  is  leading 
the  country  to  socialism? 

THE  PRESIDENT.  That's  a  funny  one,  sure 
enough. 

[7.]  Q.  Mr.  President,  do  you  plan  any 
action  in  the  coal  case? 

THE  PRESIDENT.  No  commeut. 

[8.]  Q.  Mr.  President,  there  has  been 
some  considerable  discussion  recendy — ^last 
week — of  a  possible  compromise  on  FEPC 
along  voluntary  lines.  Would  you  entertain 
such  an  idea  of  compromise 

THE  PRESIDENT.  My  ideas  on  FEPC  have 
been  very  clearly  set  out,  and  I  would  advise 
you  to  read  that  message.^ 

[9.]  Q.  Mr.  President,  what  are  you 
planning  to  do  about  Representative 
Patman's  request  that  you  impose  a  quota  on 
oil  imports?  ^ 

THE  PRESIDENT.  The  Congressman  was  in 

^The  text  of  the  address  delivered  by  Senator 
Harry  Flood  Byrd  of  Virginia  before  the  National 
Industrial  Conference  Board  in  New  York  City  on 
January  26  is  printed  in  the  Congressional  Record 
(vol.  96,  p.  A812). 

'See  1948  volume,  this  series,  Item  20. 

^Representative  Wright  Patman  of  Texas,  Chair- 
man of  the  House  Small  Business  Committee,  met 
with  the  President  at  the  White  House  on  January 
26.  At  that  time  Congressman  Patman  gave  the 
President  a  report  from  the  Committee  calling  for 
quota  restrictions  to  be  imposed  on  foreign  oil  im- 
ports, contending  that  they  were  damaging  the 
domestic  oil  industry. 


133 


[23]    Jan.  27 


Public  Papers  of  the  Presidents 


to  see  me,  and  discussed  the  matter.  We 
are  working  on  the  situation. 

[10.]  Q.  Mr.  President,  we  have  reports 
from  one  newspaper  that  Ambassador  Doug- 
las is  very  ill  and  will  not  be  continued  in 
the  Ambassadorship  even  if  he  recovers 

THE  PRESIDENT.  I  cau  scotch  that  one  just 
as  easy  as  pie.  The  Ambassador  is  recover- 
ing rapidly,  and  he  will  be  back  in  England 
inside  the  next  60  days. 

[11.]  Q.  Mr.  President,  Ambassador 
Capus  Waynick  says  he  talked  North  Caro- 
lina politics  with  you  the  other  day.  I 
wonder  if  you  would  like  to  see  him  in  the 
Senate? 

THE  PRESIDENT.  I  told  you  once  that  I  was 
not  interested  in  dabbling  in  the  primaries 
of  any  other  State  outside  of  Missouri.  That 
is  a  North  Carolina  matter  which  they  will 
have  to  settle  themselves. 

[12.]  Q.  Mr.  President,  when  Justice 
Roberts'  Atlantic  Union  group  came  in  to 
see  you,^  did  you  endorse  that  group  as  op- 
posed to  any  other  group  seeking  generally 
the  same  objectives? 

THE  PRESIDENT.   No. 

Q.  You  had  no  endorsement 

THE  PRESIDENT.  No. 

Q.  He  said  so,  but  there  has  been  some 
question 

THE  PRESIDENT.  The  Judge  and  his  group 
were  in  here,  and  as  usual  we  had  a  very 
pleasant  visit  together,  and  I  thanked  them 
for  making  a  contribution  toward  helping 
the  United  Nations  work  more  efficiendy. 

[13.]  Q.  Mr.  President,  have  you  any 
comment  on  the  suggested  compromise  by 

®On  January  20,  former  Supreme  Court  Justice 
Owen  J.  Roberts,  president  of  the  Atlantic  Union 
Committee,  headed  a  delegation  of  the  Committee 
which  called  on  the  President  at  the  White  House. 
Their  purpose  in  seeing  the  President  was  to  urge 
him  to  support  the  proposed  convocation  of  a  Fed- 
eral convention  of  the  democracies  signatory  to 
the  North  Atlantic  Pact  to  explore  the  possibility 
of  union  between  them. 


Senator  Russell  on  civil  rights?  ® 

THE  PRESIDENT.  I  dou't  kuow  anything 
about  that  compromise.  My  compromise  is 
in  my  civil  rights  message. 

[  14.]  Q.  Mr.  President,  in  the  last  2  days 
one  House  member  of  the  Joint  Congres- 
sional Atomic  Energy  Committee,  and  today 
one  elder  statesman,  have  spoken  out  publicly 
on  the  question  of  a  super  bomb.  There 
have  also  been  many  columns  written  on  the 
subject.  Is  there  anything  authoritative  that 
you  could  give  the  American  people  on  the 
subject? 

THE  PRESIDENT.  No,  there  isn't,  and  I  don't 
think  anybody  else  has  had  anything  au- 
thoritative. I  make  that  decision  and  no- 
body else. 

Q.  Is  there  anything  you  could  tell  us  as 
to  when  the  decision  might  be  made?  ^° 

THE  PRESIDENT.  No,  there  is  not. 

[15.]  Q.  Mr.  President,  is  Mr.  Lilien- 
thal's  successor  chosen  yet?  He  told  us  this 
morning  that  there  was  no  change  in  his 
plans  to  leave  on  the  15th  of  February. 

THE  PRESIDENT.  His  successor  has  not  been 
chosen.  Whenever  I  get  to  the  point  where 
I  can  announce  it,  you  will  have  it  right  away. 

Q.  Mr.  President,  is  another  member  of 
the  Commission  resigning? 

THE  PRESIDENT.  Not  that  I  kuOW  of  .^^ 


®On  January  25,  several  southern  Democratic 
congressional  leaders  met  to  plan  their  strategy  in 
dealing  with  the  civil  rights  bill.  After  the  meeting 
the  New  York  Times  reported  that  a  compromise 
might  be  proposed  containing  the  following  provi- 
sions: that  the  FEPC  program  be  put  on  a  voluntary 
basis,  that  the  antilynching  legislation  require  proof 
by  the  Government  that  in  such  mob  action  there 
had  been  collusion  between  the  mob  and  the  law 
officers,  and  that  the  poll  tax  be  repealed  only  by  a 
constitutional  amendment. 

^^See  Item  26. 

^On  February  7,  1950,  the  White  House  released 
the  text  of  the  President's  letter  accepting  the  resig- 
nation of  Lewis  L.  Strauss  as  a  member  of  the  Atomic 
Energy  Commission.  The  text  of  Mr.  Strauss'  letter 
was  released  with  the  President's  reply.  The  resig- 
nation became  effective  April  15,  1950. 


134 


Harry  S.  Truman,  ig^o 


Jan.  27    [24] 


[16.]  Q.  Mr.  President,  Mr.  Boyd,  head 
of  the  Bureau  of  Mines,  has  said  that  there 
was  or  would  be,  possibly  soon,  a  nationwide 
emergency  in  coal.  Have  you  received  that 
report  yet?  ^^ 

THE  PRESIDENT.  Yes,  I  have  received  the 
report,  and  read  it  very  carefully. 

Q.  Are  you  going  to  do  anything  about  it? 

THE  PRESIDENT.  No  Comment. 

[17.]  Q.  Mr.  President,  are  we  likely  to 
try  again  for  an  international  control  agree- 
ment on  atomic  weapons  on  the  basis  of  the 
hydrogen  bomb,  in  the  United  Nations? 

THE  PRESIDENT.  I  cau't  commeut  on  that. 
I  am  doing  everything  I  possibly  can  to  get 
the  international  control  of  atomic  energy. 
I  have  been  working  at  it  ever  since  I  became 
President. 

[18.]     Q.  Mr.  President,  have  you  any 


^The  report  was  in  the  form  of  a  letter  from 
James  Boyd,  Director  of  the  Bureau  of  Mines,  to 
Oscar  L.  Chapman,  Secretary  of  the  Interior.  The 
letter,  dated  January  20,  1950,  stated  that  there  were 
40  million  tons  of  coal  on  hand  on  January  i  and  that 
the  danger  point  of  25  days  of  overall  supply  in  the 
hands  of  consumers  was  rapidly  approaching. 

The  report  concluded  that  "if  it  had  not  been  for 
the  two  2-day  weeks  during  the  holidays  and  the 
wildcat  strikes  during  the  past  3  weeks,  it  is  esti- 
mated that  an  additional  9  to  10  million  tons  would 
have  been  available.  The  tonnage  might  well  have 
been  the  balancing  point  that  would  have  kept  days 
supply  above  the  danger  point." 


comment  on  what  Mr.  McCloy  calls  the 
creeping  blockade  of  Berlin?  ^^ 

THE  PRESIDENT.  No  commeut. 

[19.]  Q.  Mr.  President,  does  your  an- 
swer on  those  two  civil  rights  questions  mean 
that  you  would  not  entertain  a  compromise? 

THE  PRESIDENT.  I  suggest  that  you  read  my 
message,  and  that  sets  out  exactly  what  I 
want  in  civil  rights.  That's  all  the  com- 
ment I  expect  to  make  on  it. 

[20.]  Q.  Mr.  President,  how  soon  do  you 
feel  you  will  be  able  to  announce  the  new 
member  for  the  National  Labor  Relations 
Board? 

THE  PRESIDENT.  I  Can't  tell  you.  I  am  tak- 
ing plenty  of  time  on  that,  because  I  am  go- 
ing to  get  the  man  I  want  before  I  make  the 
appointment. 

Q.  Mr.  President,  is  Mr.  Styles  the  man? 

THE  PRESIDENT.  No.^* 

Reporter:  Thank  you,  Mr.  President. 
THE  PRESIDENT.  You'rc  welcomc. 

note:  President  Truman's  two  hundred  and  four- 
teenth news  conference  was  held  in  his  office  at  the 
White  House  at  4:05  p.m.  on  Friday,  January  27, 
1950. 

"  On  January  22  the  Russian  border  guards  at  the 
checkpoint  at  Helmstedt,  Germany,  began  requiring 
that  all  allied  vehicles  obtain  clearances  before  pro- 
ceeding on  the  Autobahn  connecting  Berlin  and  the 
western  zones  of  Germany. 

^* See  Item  29  [i]. 


24    Letter  Accepting  Resignation  of  Clark  M.  Clifford  as  Special 
Counsel  to  the  President.    January  27, 1950 


Dear  Clar\: 

I  have  now  to  take  a  step  which  from  the 
bottom  of  my  heart  I  wish  could  be  indefi- 
nitely deferred.  In  acquiescing  in  your 
wishes  I  am  moved  by  circumstances  with 
which  I  have  long  been  familiar.  Reluc- 
tantly, therefore,  and  with  deep  regret  I  ac- 
cept, effective  at  the  close  of  business  on  next 
Tuesday,  January  thirty-first,  the  resignation 


which  you  tender  in  your  letter  of  January 
twenty-sixth. 

It  would  be  difficult  to  overstate  the  value 
of  the  services  which  you  have  rendered 
your  country.  Before  you  undertook  your 
arduous  tasks  at  the  White  House  four  years 
ago  you  had  met  your  war  obligation  by  over 
two  years  of  service  in  the  Navy. 

Through  six  years  of  public  service — ^and 


135 


[24]    Jan.  27 


Public  Papers  of  the  Presidents 


those  potentially  among  the  most  fruitful  of 
your  professional  life — you  have  devoted 
your  talents  and  superb  abilities  exclusively 
to  your  country's  welfare.  That  is  a  long 
time  for  you  to  be  away  from  the  practice 
of  the  law.  The  urgency  of  your  need  to 
return  is  readily  understood. 

For  all  that  you  have  given  we  owe  you 
a  debt  impossible  to  pay.  You  had  much  to 
contribute  as  Special  Counsel  to  the  Presi- 
dent because  you  brought  to  your  work  such 
great  resources  of  legal  learning  and  experi- 
ence as  a  practicing  lawyer.  Besides  this  you 
had  foresight  and  courage.  Your  reports  on 
the  various  problems  on  which  I  asked  for 
your  advice  were  models  of  lucidity  and 
logic.  In  the  marshaling  and  presentation  of 
facts  your  method  reflected  your  days  before 
the  jury.    Quick  in  the  detection  of  spurious 


evidence  and  alert  always  in  detecting  the 
fallacious  in  the  arguments  of  our  opponents, 
your  final  opinions  were  always  models  of 
brevity  and  accuracy,  as  well  as  clarity  and 
strength. 

I  shall  miss  you — we  shall  all  miss  you. 
My  regret  at  your  departure  is  tempered  by 
the  knowledge  that  you  are  to  remain  in 
Washington  and  the  assurance  that  I  can  call 
upon  you  as  occasion  requires.  In  going  you 
carry  with  you  every  assurance  of  my  per- 
sonal gratitude  and  appreciation.  You  have 
also  earned  the  thanks  of  the  Nation  which 
you  have  served  so  selflessly. 
Sincerely, 

Harry  S.  Truman 

note:  Mr.  Clifford  served  as  Special  Counsel  to  the 
President  from  July  i,  1946,  through  January  31, 
1950.  His  letter  of  resignation,  dated  January  26, 
was  released  with  the  President's  reply. 


25    Letter  to  the  President  of  the  Senate  and  to  the  Speaker  of  the 
House  on  U.S.  Assistance  to  Palestine  Refugees. 
January  30,  1950 

measures  to  reintegrate  the  Palestine  refu- 
gees into  the  economic  life  of  the  area.  Its 
recommendations  are  an  example  of  the  kind 
of  development  and  planning  which  is  es- 
sential to  the  economic  grov^^th  and  improve- 
ment of  underdeveloped  areas.  The  Mission, 
in  this  survey,  has  taken  into  account  the 
human  and  natural  resources  of  the  region 
in  which  these  refugees  find  themselves,  and 
has  recommended  a  program  of  economic 
activity  which  will  be  of  lasting  benefit  to 
these  areas  and  to  the  standard  of  living  of 
peoples  who  live  there. 

Our  aid  is  needed  to  put  this  program  into 
effect  and  to  help  the  Refugees  and  the  in- 
habitants of  these  areas  in  the  Middle  East 
to  achieve  greater  productivity  through  the 
steps  recommended  in  the  report  of  the 
Mission. 

In  my  inaugural  address,  I  stressed  the 


Dear  Mr, : 

I  am  transmitting  herewith  for  the  con- 
sideration of  the  Congress  a  draft  of  pro- 
posed legislation  to  enable  the  United  States 
to  participate  in  and  contribute  to  the  United 
Nations  Relief  and  Works  Agency  for  Pales- 
tine Refugees  in  the  Near  East.  This  Agency 
has  been  established  by  the  General  Assem- 
bly of  the  United  Nations  to  deal  with  the 
problems  created  by  the  displacement  of 
hundreds  of  thousands  of  persons  as  a  result 
of  the  recent  hostilities  in  Palestine. 

The  work  of  the  Agency  will  be  to  carry 
out  the  recommendations  of  the  Economic 
Survey  Mission  for  the  Middle  East,  ap- 
pointed by  the  United  Nations.  This  Survey 
Mission,  under  the  Chairmanship  of  Gordon 
Clapp,  was  directed  by  the  United  Nations 
to  study  the  economic  dislocation  created  by 
the  conflict  in  Palestine  and  to  recommend 

136 


Harry  S.  Truman,  ig^o 


Jan.  30    [25] 


importance,  in  the  interests  of  our  foreign 
policy,  of  economic  development  of  under- 
developed areas.  In  such  a  case  as  this, 
where  relief  for  refugees  is  essential,  it  is 
advantageous  to  combine  the  relief  program, 
with  the  beginnings  of  longer  range  eco- 
nomic development. 

Point  Four  legislation  and  legislation  for 
the  United  Nations  Relief  and  Works 
Agency  for  Palestine  Refugees  are  comple- 
mentary. There  is  no  overlapping  in  the 
request  for  funds  for  the  two  programs. 

The  immediate  reason  for  the  establish- 
ment by  the  United  Nations  of  the  Economic 
Survey  Mission  to  the  Middle  East  was  the 
hope  that  through  an  economic  approach  it 
might  be  possible  to  facilitate  a  peace  settle- 
ment between  Israel  and  the  neighboring 
Arab  states.  The  problems  of  Palestine  and 
her  neighbors  are  complicated  by  the  con- 
tinuing plight  of  over  three-quarters  of  a 
million  persons  who  left  their  homes  during 
the  conflict  in  Palestine,  and  are  now  refugees 
in  the  neighboring  lands.  Homeless  and 
without  work,  these  people  cannot  care  for 
themselves.  The  nations  now  giving  them 
asylum  are  themselves  unable  to  care  for 
them.  For  some  time  to  come  they  will  re- 
main dependent  on  others  for  their  support. 

In  response  to  an  appeal  from  the  General 
Assembly  of  the  United  Nations  for  relief 
funds,  made  in  December  1948,  I  recom- 
mended to  the  Congress  that  the  United 
States  should  bear  up  to  one-half  of  the  cost 
of  a  relief  program  which  was  estimated  to 
cost  $32  million  for  a  nine  month  period. 
The  Congress  appropriated  f  16  million  for 
this  purpose.  Our  contribution  has  been 
more  than  equalled  by  the  contributions  of 
32  other  countries.  The  fund  thus  raised 
has  been  stretched  to  its  limits  and  is  now 
exhausted. 

The  United  Nations  Economic  Survey 
Mission  has  recommended  a  combined  relief 


and  public  works  program,  and  has  esti- 
mated the  cost  of  this  program  at  $54,900,000 
for  an  eighteen  month  period  beginning 
January  i,  1950. 

This  program  is  significant  in  its  practical 
approach  to  our  objective  of  economic  de- 
velopment in  underdeveloped  areas.  The 
areas  in  question  have  unrealized  economic 
potentialities  but  require  technical  assistance 
from  abroad  to  assure  their  development. 
The  projects  proposed  will  be  complete  in 
themselves,  representing  intensive  develop- 
ment in  small  areas,  and  have  been  so  se- 
lected that  they  can  be  brought  to  completion 
by  the  middle  of  1951.  They  will  result  in 
lasting  economic  benefits. 

In  illustrating  what  can  be  done  with  lim- 
ited resources  of  soil  and  water  by  the  appli- 
cation of  modern  engineering  and  agricul- 
tural techniques,  these  projects  should  point 
the  way  to  further  development  not  only  in 
the  countries  where  they  are  carried  out,  but 
in  neighboring  countries  as  well.  The  suc- 
cessful completion  of  this  program  should  go 
far  in  furthering  conditions  of  political  and 
economic  stability  in  the  Near  East.  At  the 
same  time  the  proposed  program,  while  cost- 
ing littie  more  than  direct  relief,  looks  to  the 
end  of  the  direct  relief  program  of  the 
United  Nations  in  the  Near  East,  and  to 
ultimate  solution  of  the  refugee  problem. 

I  believe  that  it  is  appropriate  that  the 
United  States  should  continue  to  bear  one- 
half  the  cost  of  this  program.  I,  therefore, 
recommend  that  the  Congress  authorize  and 
appropriate  $27,450,000  for  an  eighteen 
month  period.  I  trust  that  other  nations 
which  have  contributed  to  the  program  in 
the  past  will  be  equally  generous  in  the 
future. 

The  importance  of  a  substantial  United 
States  contribution  to  this  program  is  very 
real.  Not  only  is  it  consistent  with  the 
humanitarian  spirit  of  the  American  people; 


137 


[25]    Jan.  30 


Public  Papers  of  the  Presidents 


it  is  also  in  our  national  interest  to  help  main- 
tain peaceful  and  stable  conditions  in  the 
Near  East. 

It  is  with  these  considerations  in  mind  that 
I  recommend  to  the  Congress  the  early  enact- 
ment of  legislation  to  enable  the  United 
States  to  take  its  part  in  this  program  of  the 
United  Nations. 

Sincerely  yours, 

Harry  S.  Truman 

note:  This  is  the  text  of  identical  letters  addressed 
to  the  Honorable  Alben  W.  Barkley,  President  of 
the  Senate,  and  to  the  Honorable  Sam  Rayburn, 


Speaker  of  the  House  of  Representatives. 

On  June  5,  1950,  the  President  approved  the  For- 
eign Economic  Assistance  Act  of  1950  (64  Stat. 
198).  Tide  III  of  the  act  is  entided  "United  Na- 
tions Palestine  Refugee  Aid  Act  of  1950."  Under 
section  302  the  Secretary  of  State  was  authorized 
"to  make  contributions  from  time  to  time  before 
July  I,  1 95 1,  to  the  United  Nations  for  the  'United 
Nations  Relief  and  Works  Agency  for  Palestine 
Refugees  in  the  Near  East,*  established  under  the 
resolution  of  the  General  Assembly  of  the  United 
Nations  of  December  8,  1949,  in  amounts  not  ex- 
ceeding in  the  aggregate  $27,450,000  for  the  pur- 
poses set  forth  in  this  title.'*  For  the  statement 
by  the  President  upon  signing  the  Foreign  Economic 
Assistance  Act,  see  Item  154. 


26    Statement  by  the  President  on  the  Hydrogen  Bomb. 
]anuary  31,  1950 


IT  IS  part  of  my  responsibility  as  Com- 
mander in  Chief  of  the  Armed  Forces  to  see 
to  it  that  our  country  is  able  to  defend  itself 
against  any  possible  aggressor.  Accordingly, 
I  have  directed  the  Atomic  Energy  Com- 
mission to  continue  its  work  on  all  forms  of 
atomic  weapons,  including  the  so-called 
hydrogen  or  superbomb.  Like  all  other 
work  in  the  field  of  atomic  weapons,  it  is 


being  and  will  be  carried  forward  on  a 
basis  consistent  with  the  overall  objectives  of 
our  program  for  peace  and  security. 

This  we  shall  continue  to  do  until  a  satis- 
factory plan  for  international  control  of 
atomic  energy  is  achieved.  We  shall  also 
continue  to  examine  all  those  factors  that 
affect  our  program  for  peace  and  this  coun- 
try's security. 


27    Telegram  to  Labor  and  Management  Leaders  Proposing  a  Plan 
for  Settling  the  Coal  Industry  Dispute.    January  31,  1950 


SINCE  June  of  1949  work  has  been  per- 
formed by  the  members  of  the  United  Mine 
Workers  of  America,  and  bituminous  coal 
mines  have  been  operated  by  their  owners 
and  operators,  only  intermittently  and  with- 
out the  stabilizing  advantages  of  a  labor 
contract.  Many  months  of  bargaining  by 
the  representatives  of  the  parties  and  the 
efforts  of  mediation  officers  of  the  Govern- 
ment have  failed  to  produce  a  settlement  of 
their  dispute.  That  dispute  visits  severe 
hardship  upon  the  miners  and  their  families 


and  severe  economic  loss  upon  those  who 
have  invested  in  bituminous  coal  mines. 
The  continuous  production  of  an  adequate 
supply  of  bituminous  coal  is  essential  to  the 
economic  stability,  progress  and  security  of 
this  Nation.  Continuing  stoppages,  re- 
strictions in  production  and  shortages  which 
result  from  the  inability  of  the  parties  to 
setde  their  dispute  are  of  grave  concern  to 
the  people  of  the  Nation. 

The    law    places    the   responsibility    for 
settling  management-labor  disputes  on  the 


138 


Harry  S.  Truman,  ig^o 


Jan.  31     [27] 


parties,  not  the  Federal  Government.  The 
Government  can  give  them  mediation  as- 
sistance; but  in  the  final  analysis  the  parties 
themselves  must  wiixjt  their  ov^n  collective 
bargaining  agreement.  Voluntary  action, 
not  compulsion,  in  these  matters  is  not  only 
my  personal  conviction  but  the  national 
policy.  The  Government  can  no  longer 
stand  by,  hovi^ever,  and  permit  the  continu- 
ance of  conditions  w^hich  have  novi^  come  to 
have  such  a  serious  effect  upon  the  public 
interest.  Accordingly,  I  am  making  the 
follovi^ing  proposal  to  the  representatives  of 
the  parties: 

(a)  That  work  be  performed  and  normal 
production  maintained  for  a  period  of  70  days 
beginning  February  6  under  the  terms  and 
conditions  last  agreed  upon  by  the  Union  and 
the  employers,  excepting  as  such  terms  and 
conditions  may  be  modified  by  agreement  of 
the  parties  or  by  law^. 

(b)  That  representatives  of  the  parties  ap- 
pear before  and  cooperate  v^^ith  a  Fact-Find- 
ing  Board  v^hich  I  shall  appoint.  This  Board 
v^ould  consist  of  three  citizens  representing 
the  public,  none  of  them  from  Government, 
Industry  or  Labor.  It  v^ould  be  empov^^ered 
to  inquire  into  any  and  all  facts  and  circum- 
stances relating  to  the  current  dispute.  The 
Board  w^ould  be  requested  to  make  its  report, 
including  findings  and  recommendations, 
w^ithin  60  days  after  February  6.  The  rec- 
ommendations w^ould  be  addressed  to  the 
parties  and  to  the  President,  outlining  the 
procedures  and  the  grounds  for  a  fair  and 
equitable  settlement  of  the  current  dispute. 
Immediately  after  the  publication  of  the 
Board's  report,  representatives  of  the  parties 
MTould  be  called  into  conference  by  the  Di- 
rector of  the  Federal  Mediation  and  Con- 
ciliation Service,  who  would  seek  to  assist 


them  in  resolving  their  dispute  in  light  of 
the  recommendations  or  any  modification 
thereof  which  might  be  suggested  by  the 
parties.  The  parties  or  either  of  them  would 
be  free  to  accept  or  reject  the  recommenda- 
tions of  the  Board  as  they  see  fit. 

In  making  this  proposal,  I  do  not  wish  to 
interfere  with  any  bargaining  conferences 
that  may  assist  in  the  settlement  of  this  dis- 
pute. I  would  appreciate  your  informing 
me  by  12  noon,  Saturday,  February  4,  1950, 
if  the  normal  production  of  coal  will  be  re- 
sumed on  Monday,  February  6,  1950,  with- 
out reference  to  this  proposal.  If  produc- 
tion will  be  so  resumed  this  proposal  may  be 
disregarded.  If  you  cannot  inform  me  that 
normal  production  will  be  resumed  on  Mon- 
day without  reference  to  this  proposal,  I 
would  then  want  your  reply  to  this  proposal 
by  5  p.m.  Saturday,  February  4,  and  I  urge 
your  acceptance  in  the  National  interest. 

Harry  S.  Truman 

note:  This  is  the  text  of  identical  telegrams  ad- 
dressed to  the  following  persons:  George  H.  Love, 
operators'  spokesman  for  the  National  Bituminous 
Wage  Conference,  and  president  of  the  Pittsburgh 
Consolidation  Co.;  John  L.  Lewis,  president.  United 
Mine  Workers  of  America;  Harry  M.  Moses, 
president,  H.  C.  Frick  Coal  Co.;  and  Joseph  E. 
Moody,  president.  Southern  Coal  Producers 
Association. 

On  February  6,  1950,  the  President  signed  Execu- 
tive Order  10106  "Creating  a  Board  of  Inquiry  to 
Report  on  a  Labor  Dispute  Affecting  the  Bitumi- 
nous Coal  Industry  of  the  United  States"  (3  CFR, 
1 949-1 953  Comp.,  p.  300).  The  order  was  issued 
pursuant  to  section  206  of  the  Labor  Management 
Relations  Act,  1947  (Taft-Hartley  Act). 

On  the  same  day  the  President  appointed  the 
following  persons  as  members  of  the  Board:  W.  Wil- 
lard  Wirtz,  John  T.  Dunlop,  and  David  L.  Cole, 
chairman.  The  Board's  report,  entitled  "Report  to 
the  President:  The  Labor  Dispute  in  the  Bituminous 
Coal  Industry,*'  was  submitted  to  the  President  on 
February  11,  1950  (Government  Printing  OflSce: 
I950>  8  pp.). 

See  also  Items  35,  49,  and  50. 


139 


[28]    Feb.  I  Public  Papers  of  the  Presidents 

28    Letter  to  the  Speaker  on  the  Panama  Canal  and  the 
Panama  Railroad  Company.    February  i,  1950 

[  Released  February  i,  1950.    Dated  January  31,  1950  ] 


Dear  Mr,  Speaker: 

I  am  transmitting  herewith  the  report  and 
recommendations  of  the  Bureau  of  the 
Budget  with  respect  to  the  organization  and 
operations  of  the  Panama  Canal  and  Panama 
Railroad  Company.  The  report  was  pre- 
pared pursuant  to  House  Report  No.  1304, 
8ist  Congress,  ist  Session. 

The  recommendations  of  the  Bureau  of 
the  Budget  have  my  approval  except  the 
recommendation  with  respect  to  the  transfer 
of  supervision  of  the  Panama  Canal  from  the 
Secretary  of  the  Army  to  the  Secretary  of 
Commerce.  I  desire  to  give  further  study 
to  that  recommendation,  particularly  in  con- 
nection with  plans  to  carry  out  the  proposals 
of  the  Commission  on  Organization  of  the 
Executive  Branch  of  the  Government  which 
are  now  under  consideration. 

As  preliminary  steps  to  facilitate  the  rec- 
ommended reorganization  of  the  Panama 
Canal  and  the  Panama  Railroad  Company  I 
have  today  issued  two  executive  orders. 
The  first  delegates  to  the  Governor  of  the 
Panama  Canal  authority  to  determine  the 
internal  organization  of  the  Panama  Canal. 
The  second  order  transfers  certain  business 
operations  from  the  Panama  Canal  to  the 
Panama  Railroad  Company.  These  initial 
transfers  will  simplify  and  facilitate  the  early 
transfer  to  the  Company  of  all  business  op- 
erations of  the  Panama  Canal. 


While  several  of  the  recommendations  can 
be  implemented  by  executive  order,  legisla- 
tion is  required  to  (i)  authorize  transfer  of 
the  Panama  Canal  to  the  Panama  Railroad 
Company;  (2)  change  the  name  of  the 
Panama  Railroad  Company  to  Panama 
Canal  Company;  (3)  authorize  the  Com- 
pany's board  of  directors  to  establish  toll 
rates,  subject  to  the  President's  approval; 
(4)  permit  the  Company  to  retain  and  utilize 
toll  revenues;  and  (5)  authorize  appropria- 
tions to  the  Company  to  cover  losses  which 
might  result  from  changes  in  economic  con- 
ditions. I  recommend  the  enactment  of 
such  legislation. 

It  is  believed  that  implementation  of  the 
Bureau  of  the  Budget's  recommendations 
will  result  in  a  more  logical  grouping  of  func- 
tions, provide  a  sounder  basis  for  determin- 
ing toll  rates  and  other  charges,  facilitate 
operations,  and,  in  general,  promote  the 
more  effective  administration  of  the  Panama 
Canal  enterprise. 

Very  sincerely  yours, 

Harry  S.  Truman 

[Honorable  Sam  Rayburn,  Speaker  of  the  House  of 
Representatives  ] 

note:  The  President  referred  to  Executive  Order 
loioi  "Amendment  of  Executive  Order  No.  9746 
of  July  I,  1946,  Relating  to  the  Panama  Canal"  and 
Executive  Order  10 102  "Transfer  of  Certain  Busi- 
ness Operations,  Facilities  and  Appurtenances  from 
the  Panama  Canal  to  the  Panama  Railroad  Com- 
pany" (3  CFR,  1 949-1 953  Comp.,  p.  296). 


29    The  President's  News  Conference  of 
February  2,  1950 


THE  PRESIDENT,  [i.]  Last  Week  there  was 
a  misunderstanding  about  a  certain  appoint- 
ment.   I  was  talking  about  one  thing  and 


the  question  was  about  another.^ 
Q.  A  little  louder,  please! 
^  See  Item  23  [20]. 


140 


Harry  S.  Truman,  ig$o 


Feb.  2    [29] 


THE  PRESIDENT.  I  say  last  week  there  was  a 
misunderstanding  about  a  man  under  con- 
sideration for  a  certain  appointment.  I 
thought  the  question  was  in  regard  to  one 
initial  organization  and  it  was  in  regard  to 
another. 

I  will  clear  that  up  this  morning  by  an- 
nouncing the  appointment  of  Paul  L.  Styles 
to  the  National  Labor  Relations  Board,  to 
take  the  place  of  Mr.  Gray. 

That's  all  the  announcements  I  have  to 
make. 

[2.]  Q.  Mr.  President,  do  you  have  any 
plans  for  giving  the  FEPC  bill  a  boost 
through  the  House  by  speaking  to  the 
Speaker  and  asking  him  to  recognize  Chair- 
man Lesinski  ?  ^ 

THE  PRESIDENT.  You  should  be  at  the  Big 
Four  ^  meetings  every  Monday  morning. 
You  would  hear  that  we  discuss  it  nearly 
every  Monday  morning. 

Q.  How  do  you  get  in  to  the  Big  Four? 
[Laughter] 

THE  PRESIDENT.  You  havc  to  havc  a  special 
dispensation. 

[3.]  Q.  Mr.  President,  yesterday  you  is- 
sued an  Executive  order  on  the  dissemina- 
tion of  information,  and  in  it,  in  the  last 
paragraph,  you  include  military  documents 
and  reports  which  have  been  marked  "Con- 
fidential" and  "Restricted" — also  "Top 
Secret"  and  "Secret,"  etc.  That  classification 
"Restricted"  is  one  of  the  most  general  I 
have  ever  seen. 

THE  PRESIDENT.  It  is  cxactly  a  copy  of  the 
order  that  has  been  in  effect  all  the  time, 
and  the  only  reason  that  order  was  issued 
was  that  it  conform  with  the  new  Defense 


®  Representative  John  Lesinski  of  Michigan,  Chair- 
man of  the  House  Committee  on  Education  and 
Labor. 

^Alben  Barkley,  Vice  President  of  the  United 
States;  Sam  Rayburn,  Speaker  of  the  House  of 
Representatives;  Scott  W.  Lucas,  Senate  Majority 
Leader;  and  John  W.  McCormack,  Majority  Floor 
Leader  in  the  House  of  Representatives. 


Act.  There  isn't  any  difference  with  this 
order  and  the  one  that  has  been  in  ef- 
fect^  

Q.  The  point  was 

THE  PRESIDENT.  that  the  order  con- 
form with  the  new  law  on  the  Defense  Act. 
Unification — it's  an  order  to  conform  with 
the  Unification  Act.  That's  all  there  is  to  it. 
That  order  has  been  in  effect  ever  since  I 
have  been  President. 

Q.  Is  there  any  way  to  get  a  definition  of 
"Restricted,"  so  that  the  Army  officers  would 
know  what  it  means.?  In  some  places  it 
refers  to  clippings. 

THE  PRESIDENT.  I  Can't  auswer  the  ques- 
tion. You  will  have  to  talk  to  somebody  that 
uses  "Restricted."  I  don't  use  it.  [Laugh- 
ter] 

Q.  Well,  every  office  boy  seems  to  stamp 
"Restricted"  or  "Confidential,"  and  I  have 
seen  many  "Confidential"  and  "Restricted" 
documents  which  had  no  reason  whatever  to 
be 

THE  PRESIDENT.  You  ucver  saw  one  come 
out  with  my  signature  on  it.  [Laughter] 
You  talk  to  them,  now.  That's  their  busi- 
ness not  mine.  Those  "Restricted"  docu- 
ments are  mostly  military. 

[4.]  Q.  Mr.  President,  has  Governor 
Forrest  Smith  ^  been  in  to  see  you  in  the  last 
few  days,  or  do  you  expect  to  see  him  soon? 

THE  PRESIDENT.  Ycs,  I  cxpect  to  see  him 
about  the  i6th  of  February. 

[5-]  Q-  Well,  Mr.  President,  returning 
to  this  Executive  order  a  moment,  would  you 
interpret  it  for  us? 

THE  PRESIDENT.  No,  I  wou't  try  to  inter- 
pret it  for  you — and  that's  final,  and  I  don't 


*  Executive  Order  10104  "Defining  Certain  Vital 
MiHtary  and  Naval  Installations  and  Equipment  as 
Requiring  Protection  Against  the  General  Dissemi- 
nation of  Information  Relative  Thereto"  (3  CFR, 
1949-1953  Comp.,  p.  298).  The  order  superseded 
Executive  Order  8381  of  March  22,  1940  (3  CFR, 
Cum.  Supp.,  p.  634). 

^  Of  Missouri. 


141 


[29]    Feb.  2 


Public  Papers  of  the  Presidents 


intend  to  comment  on  it  further.  That  order 
speaks  for  itself.  You  can  put  your  own  in- 
terpretation on  it. 

Q.  Mr.  President,  I  have  seen  a  picture 
of  the  North  Pole  taken  from  an  airplane 
marked  "Restricted."     [Laughter] 

Q.  What? 

Q.  The  North  Pole— North  Pole. 

THE  PRESIDENT.  A  picture  of  the  North 
Pole  marked  "Restricted."  I  can't  comment 
on  that,  though.  Take  it  up  with  the  Attor- 
ney General  or  the  military  which  is  respon- 
sible. 

Q.  There  is  pretty  much  confusion  about 
what  we  can  write  and  what  we  can't. 

THE  PRESIDENT.  I  am  sorry  about  that. 
Since  I  have  been  President 

[6.]  Q.  Mr.  President,  do  you  have  any 
comment  on  the  refloating  of  the  battleship 
Missouri? 

THE  PRESIDENT.  No  COmmCUt.^ 

[7.]  Q.  Mr.  President,  do  you  have  any 
comment  on  the  present  crisis  relating  to  the 
surplus  of  potatoes? 

THE  PRESIDENT.  I  think  the  lady  from 
Maine  ought  to  know  more  about  potatoes 
than  anybody  in  the  United  States.  She 
ought  to  understand  that  this  farm  act  which 
was  amended  last  year  puts  us  in  the  position 
to  place  those  potatoes  in  the  condition  in 
which  they  are.  And  that  whole  thing  is  a 
sectional  thing,  and  for  the  benefit  of  the 
potato  growers  of  Maine  as  well  as  the  other 
potato  growers  in  the  United  States;  but  that 
is  how  it  came  about.  I  suggest  you  talk  to 
Senator  Brewster  about  it. 

Q.  Half  the  surplus,  I  understand,  is 
scattered  all  over  the  country. 

THE  PRESIDENT.  Ycs,  and  the  other  half  is 
in  Maine — 25  million  bushels  are  in  Maine. 

®On  January  17  the  U.S.S.  Missouri,  the  only 
active  battleship  in  the  United  States  fleet,  ran 
aground  in  the  Chesapeake  Bay  near  Thimble  Shoal 
Light.  The  mishap  occurred  at  the  start  of  a  routine 
training  cruise  to  Guantanamo,  Cuba.  The  ship 
was  refloated  on  February  i. 


Q.  That's  right. 

[8.]  Q.  Mr.  President,  would  the  Chief 
of  Naval  Operations  have  the  authority  to 
decide  whether  the  Missouri  should  be  re- 
placed by  an  airplane  carrier,  or  would  that 
be  entirely  up  to  you.? 

THE  PRESIDENT.  That  is  a  matter  that  prob- 
ably would  be  discussed  with  me  before  it 
was  done.  The  Secretary  of  the  Navy  has 
the  right  to  make  that  order,  if  he  so  chooses. 

[9.]  Q.  Mr.  President,  did  you  talk  to 
Mr.  Maury  Maverick^  about  any  matters 
down  in  Texas.? 

THE  PRESIDENT.  No,  I  dou't  think  we  did. 
I  discussed  a  lot  of  things  historically  with 
Maury  Maverick.  He  brought  me  in  three 
very  interesting  books.  One  about  White 
House  furniture.  One  on  army  regulations 
of  1835 — which  is  most  interesting — ^I  am 
going  to  send  that  to  West  Point  for  their 
Library. 

And  I  forget  what  the  other  one  is — Oh, 
I  know — it  is  a  book  by  a  gentleman  named 
Major  General  Truman.  [Laughter]  He 
made  the  first  Truman  report  to  the  United 
States  President  of  1869.  -^^^  ^^  ^^^  °^  ^^ 
reconstruction  of  the  South.  And  while  I 
was  in  the  Senate,  when  I  got  out  my  first 
report  as  chairman  of  that  Committee,  Mr. 
Halsey  who  was  then  the  Secretary  of  the 
Senate,  hunted  up  this  old  Truman  report. 
It  is  most  interesting. 

Q.  Mr.  President,  was  that  top  secret  then.? 

THE  PRESIDENT.  Not  that  I  kuOW  of. 

[10.]  Q.  Mr.  President,  will  the  batde- 
ship  Missouri  be  taken  out  of  service.? 

THE  PRESIDENT.  I  can't  auswer  the  question. 

[11.]  Q.  Mr.  President,  Senator  Vanden- 
berg  yesterday  said  that  he  wished  that  you 
would  follow  up  your  directive  on  the  super- 
bomb with  a  formal  notification  to  the 
United  Nations,  first,  that  you  have  ordered 
work  to  proceed  on  it;  second,  that  the 


^Former  Representative  Maury  Maverick  of  San 
Antonio,  Tex. 


142 


Harry  S.  Truman,  ig^o 


Feb. 


[29] 


United  States  stands  ready  to  suspend  the 
project  at  the  moment  Soviet  Russia  permits 
adequate  international  control. 

THE  PRESIDENT.  I  have  no  comment  on 
Senator  Vandenberg's  statement,  but  for 
your  information  we  have  urged  constandy 
that  international  control  be  accepted  by  all 
the  nations  of  the  world.  Hardly  a  week 
goes  by  that  that  matter  is  not  brought  up, 
at  my  suggestion,  in  the  United  Nations, 

[12.]  Q.  Mr.  President,  in  your  first  an- 
swer on  FEPC  do  you  mean  that  you  have 
asked  the  Speaker  to  recognize 

THE  PRESIDENT.  Why  Certainly  I  have.  I 
talk  to  him  about  it  every  Monday  morning. 

Q.  You  have  asked  him  to  recognize 
Lesinski? 

THE  PRESIDENT.  No,  I  didu  t  ask  him  to 
recognize  anybody,  I  asked  him  to  consider 
the  passage  of  FEPC  in  both  Houses.  I 
didn't  ask  him  to  recognize  anybody.  That's 
the  business  of  the  Speaker.  He  has  been 
in  charge  of  that,  and  nobody  can  tell  him 
whom  to  recognize, 

[13.]  Q.  Mr.  President,  I  have  a  pro 
forma  thing,  if  nothing  else.  Do  you  think 
notification  to  the  United  Nations  of  the  new 
superbomb  project  is  necessary  or  advisable? 

THE  PRESIDENT.  I  dou't  think  it's  necessary 
or  advisable. 

Q.  Mr.  President,  do  you  plan  to  do  any- 
thing to  use  the  new  superbomb  as  a  basis 
to  make  any  new  move  for  international 
control? 

THE  PRESIDENT.  I  covcrcd  that  in  the  state- 
ment that  was  made  the  other  day,  which 
covers  it  completely.^ 

[14.]  Q.  Mr.  President,  do  you  have  any 
comment  on  Russia's  demand  that  Hirohito 
be  tried? 

THE  PRESIDENT.  I  was  informed  just  now 
by  the  Secretary  of  State  that  a  20-page  state- 
ment, in  Russian,  was  delivered  to  the  Secre- 

®  Item  26. 


tary  of  State.  The  Secretary  of  State  can't 
read  Russian,  so  until  it  is  translated,  we  can 
make  no  comment  on  it.® 

[15.]  Q.  Mr.  President,  yesterday  Gov- 
ernor Duff  of  Pennsylvania  and  five  other 
Governors  urged  that  the  Republican  Party 
should  be  an  organization  that  is  broad  and 
not  exclusive,  a  party  of  service  and  not  of 
privilege,  a  party  that  is  hard-hitting  and  not 
timid,  a  party  that  is  progressive  and  not 
backsliding,  a  party  that  is  constructive  and 
not  petty. 

THE  PRESIDENT.  I  would  suggcst  that  the 
Governor  of  Pennsylvania  join  the  Demo- 
cratic Party.    That's [Laughter] 

Q.  Could  we  have  the  text  of  that  ques- 
tion? 

THE  PRESIDENT,  He  wanted  the  text  of 
your  question. 

THE  PRESIDENT.  Jack  wiU  give  it  to  you. 

Mr.  Romagna  [reading]:  "That  the  Re- 
publican Party  should  be  an  organization 
that  is  broad  and  not  exclusive 

Q.  Mr.  President,  maybe  I'd  better  read 
it  from  this:  "That  the  Republican  Party 
should  be  an  organization  that  is  broad  and 
not  exclusive,  a  party  of  service  and  not  of 
privilege,  a  party  that  is  hard-hitting  and 
not  timid,  a  party  that  is  progressive  and 
not  backsliding,  a  party  that  is  constructive 
and  not  petty." 

THE  PRESIDENT.  And  I  iuvited  the  Gover- 
nor to  join  the  Democratic  Party.  We  al- 
ready have  that  sort  of  party.     [Laughter] 

Q.  Mr.  President,  do  you  think  the  Gov- 
ernor  

Q.  Mr.  President,  can  we 

THE  PRESIDENT.  Wait  a  miuutc — I  prom- 
ised to  answer  him — I  promised  to  answer 
his  question. 

®For  the  text  of  a  State  Department  release  of 
February  3  questioning  the  motives  of  the  Soviet 
Union  on  their  request  that  the  Emperor  of  Japan 
be  tried,  see  the  Department  of  State  Bulletin  (vol. 
22,  p.  244). 


143 


[29]    Feb.  2 


Public  Papers  of  the  Presidents 


Q.  Do  you  think  the  Governor  has  done  a 
good  job  describing  the  Democratic  Party? 

THE  PRESIDENT.  The  Democratic  Party  is 
the  sort  of  party  he  describes. 

Now  what  was  that  question  back  there? 

Q.  Can  we  put  quotes  around  your  reply 
to  that  question? 

THE  PRESIDENT.  I  havc  no  objcction  to  that. 

[16,]  Q.  Mr.  President,  some  days  ago 
Mr.  Stowe  was  quoted  as  saying  that  he  had 
intervened  in  behalf  of  the  Lustron  Corpora- 
tion with  RFC,  on  the  ground  that  the  na- 
tional defense  angle  should  be  considered.^® 
Would  you  comment  on  that,  sir? 

THE  PRESIDENT.  I  have  uo  commcut. 

[17.]  Q.  Mr.  President,  have  you  chosen 
a  successor  to  David  E.  Lilienthal  yet? 

THE  PRESIDENT.  No,  I  have  not.  I  will 
announce  it  to  you  just  as  soon  as  I  am  ready 
to  appoint  the  man. 

[18.]  Q.  Mr.  President,  do  you  like  the 
new  proposed  amendment  to  revise  the  elec- 
toral system?  ^^ 


*"  The  Reconstruction  Finance  Corporation  had 
ordered  the  Lustron  Corporation,  a  manufacturer 
of  prefabricated  housing,  to  submit  a  plan  for 
putting  its  financial  affairs  in  order.  The  New  York 
Times  reported  that  on  January  5  the  Lustron  Cor- 
poration filed  a  reorganization  plan  with  the  RFC 
seeking  to  head  off  Federal  foreclosure  action  on 
$22  million  worth  of  overdue  loans. 

"  On  January  5,  1949,  Senator  Henry  Cabot  Lodge, 
Jr.,  of  Massachusetts,  and  11  other  Senators  intro- 
duced S.J.  Res.  2,  proposing  an  amendment  to  the 
Constitution  changing  the  method  of  electing  the 
President  and  Vice  President.  Under  the  proposed 
amendment  all  presidential  candidates  would  share 
the  electoral  votes  of  each  State  in  proportion  to 
the  number  of  popular  votes  that  they  had  received. 
The  candidate  receiving  the  most  electoral  votes, 
providing  that  he  had  obtained  more  than  40  per- 
cent of  the  total,  would  be  elected.  If  none  of  the 
candidates  received  40  percent  of  the  electoral  votes, 
the  House  and  Senate  jointly  would  elect  a  President 
and  a  Vice  President  from  among  the  two  top  can- 
didates for  each  office. 

S.  J.  Res.  2  was  passed  by  the  Senate  on  February 
I,  1950.  On  July  17,  1950,  the  House  voted  134- 
210  against  bringing  the  bill  to  the  floor,  and  the 
proposed  amendment  expired  with  the  8ist  Congress. 


THE  PRESIDENT.  Well,  I  Ordinarily  don't 
comment  on  any  legislation  that  is  pending, 
but  you  know  a  constitutional  amendment  is 
not  a  matter  that  the  President  passes  on,  it 
is  passed  by  two-thirds  vote  of  both  Houses. 
And  then  it  is  sent  to  be  ratified  by  three- 
fourths  of  the  States. 

I  think  that  this  resolution  that  was  passed 
by  the  Senate  yesterday  is  a  forward  step. 
I  was  very  much  interested  in  it.  I  have 
read  all  the  records  and  all  the  hearings  on 
it;  and  I  made  some  suggestions  myself  on 
the  thing,  most  of  which  were  adopted. 
And  I  believe  it  would  be  a  step  in  the  right 
direction  if  the  States  choose  to  ratify  the 
constitutional  amendment.  It  takes  36 
States  to  ratify  an  amendment. 

But  I  would  advise  you  to  read  the  hear- 
ings on  that,  they  are  most  interesting.  You 
will  find  more  about  elections  and  presiden- 
tial history  that  you  never  heard  of  before,  if 
you  haven't  read  it. 

[19.]  Q.  Mr.  President,  in  the  proposi- 
tion to  the  coal  operators  and  John  L. 
Lewis,^^  you  ask  for  a  return  to  normal  pro- 
duction. Would  you  care  to  say  whether 
that  requires  a  5-day  week,  or  less.? 

THE  PREsmENT.  I  askcd  for  normal  pro- 
duction under  the  reinstatement  of  contract. 
The  contract  itself  sets  that  out. 

Q.  Mr.  President,  that  means 

THE  PRESIDENT.  You  wiU  have  to  translate 
that  yourselves.  In  some  places  they  can't 
work  a  full  week  on  account  of  the  local 
situation.  Now  that  applies  all  over  the 
United  States.  Generally,  I  would  say  that 
it  means  a  5-day  week. 

Q.  Are  you  ready  to  invoke  the  Taft- 
Hardey  Act,  if  they  don't? 

THE  PRESIDENT.  Whenever  there  is  an 
emergency,  I  will  invoke  the  Taft-Hardey 
Act,  as  I  told  you  before. 

Q.  Senator  Byrd  intimated  that  you  had 

^  See  Item  27. 


144 


Harry  S.  Truman,  igp 


Feb.  2    [30] 


an  agreement  with  the  labor  movement  not 
to  invoke  it? 

THE  PRESIDENT.  Hc  may  knov7  something 
that  I  don't.    I  have  no  such  agreement. 

[20.]  Q.  Mr.  President,  I  am  not  trying 
to  heckle  you  on  this 

THE  PRESIDENT.  That's  all  right.  Try 
your  best;  you  can't  heckle  me.  Go  ahead. 
[Laughter] 

Q.  Well,  in  any  case,  sir,  we  are  forced  to 
rely  on  gossip  and  so-called  White  House 
circles,  and  things  like  that,  to  determine 
what  caused  you  to  reach  your  decision  to 
produce  the  superbomb? 

THE  PRESIDENT.  The  Statement  that  I  re- 
leased covers  the  ground  so  far  as  I  expect 
to  go  with  it. 

Q.  Do  you — you  wouldn't  care,  sir,  to 
elaborate — I  mean 

THE  PRESIDENT.  No.  No,  I  have  no  fur- 
ther statement  to  make  except  the  one  that 
was  released. 

Q.  Mr.  President,  Senator  McMahon  has 
indicated  that  he  is  about  to  make  a  speech 
asking  for  a  nationwide  public  discussion  of 
the  issues  raised  by  the  superbomb.  To  do 
that,  facts  about  it  are  necessary.  Can  wc 
look  forward  to  having  some  disclosures  fur- 
ther than  that 

THE  PRESIDENT.  No,  you  canuot  look  for- 
ward to  anything  except  what  was  stated. 

[21.]  Q.  Mr.  President,  do  you  plan  to 
send  up  your  message  on  the  New  England 
public  power  program  pretty  soon? 

THE  PRESIDENT.  I  don't  know  whether  I 


can  get  it  ready  in  a  short  time,  but  we  are 
working  on  it.^^ 

[22.]  Q.  Mr.  President,  have  you  asked 
Mr.  Webster  to  head  up  the  Research  and 
Development  Board? 

THE  PRESIDENT.  He  is  Under  consideration. 

[^3-]  Q-  Mr.  President,  have  you  re- 
cently given  Governor  Gruening  of  Alaska 
assurances  of  stepping  up  the  defenses  for 
the  Territory? 

THE  PRESIDENT.  I  discusscd  the  matter 
with  Governor  Gruening  and  with  the  Secre- 
tary of  Defense,  and  of  course  that  situation 
will  be  covered  in  the  general  defense  pro- 
gram of  the  country. 

[24.]  Q.  Mr.  President,  do  you  think 
the  new  electoral  law  will  help  you  get  re- 
elected in  1952?     [Laughter] 

THE  PRESIDENT.  For  your  information, 
that  resolution  is  passed  by  a  two-thirds  vote 
by  both  Houses.  It  will  not  be  law  in  1952, 
you  can  be  sure  of  that.    [Laughter] 

[25.]  Q.  Mr.  President,  do  you  plan  any 
action  on  oil  imports? 

THE  PRESIDENT.  Thc  matter  is  under  con- 
sideration by  the  State  Department  now. 
I  think  Dean  Achcson  answered  that  yester- 
day in  his  press  conference.^* 

Reporter:  Thank  you,  Mr.  President. 

THE  PRESIDENT.  You  are  entirely  welcome. 

note:  President  Truman's  two  hundred  and  fifteenth 
news  conference  was  held  in  his  office  at  the  White 
House  at  10:30  a.m.  on  Thursday,  February  2,  1950. 

"Item  33. 

"For  the  statement  of  Secretary  of  State  Dean 
Acheson  at  his  press  conference  on  February  i,  see 
the  Department  of  State  Bulletin  (vol.  22,  p.  292). 


30    Statement  by  the  President  on  the  Crusade  Against 
Heart  Disease.    February  2,  1950 


THE  Surgeon  General  of  the  United  States 
Public  Health  Service  has  called  heart  dis- 
eases, which  annually  kill  more  than  625,000 
men,  women,  and  children,  our  most  chal- 


lenging public  health  problem.  They  are 
the  Nation's  leading  cause  of  death.  Meas- 
ures to  cope  with  this  threat  are  of  immedi- 
ate concern  to  every  one  of  us. 


145 


[30]    Feb.  2 


Public  Papers  of  the  Presidents 


Such  measures  are  already  making  them- 
selves felt.  Extensive  efforts  are  being  made 
to  control  heart  diseases.  Nationwide  pro- 
grams, both  governmental  and  voluntary, 
aimed  at  the  reduction  of  death  and  dis- 
ability due  to  cardiovascular  disease,  are 
functioning  on  a  wide  scale. 

Many  of  our  finest  scientific  minds,  our 
most  highly  skilled  physicians,  our  civic- 
minded  business  and  professional  leaders, 
are  enlisted  in  this  great  crusade.  But  they 
cannot  be  expected  to  do  the  whole  job  by 


themselves.  Victory  in  the  fight  they  are 
waging  for  all  the  people  can  be  achieved 
only  with  the  cooperation  of  the  general 
public. 

I,  therefore,  urge  every  citizen  to  learn  the 
facts  about  heart  diseases  and  the  steps  that 
are  being  taken  to  combat  them.  I  urge 
every  citizen,  for  his  own  sake  and  that  of 
the  Nation  as  a  whole,  to  give  wholehearted 
support  to  physicians  and  scientists  engaged 
in  an  unceasing  battle  against  heart  diseases. 


31    Remarks  to  a  Group  of  Baptist  Missionaries. 
February  3,  1950 


AS  I  told  you,  the  only  way  we  will  ever 
arrive  at  peace  in  the  world  is  to  setde  it  on 
a  moral  Christian  basis.  And  that  is  what 
I  have  been  working  on  for  5  years  or  more. 
We  sometimes  think  we  are  approaching  a 
solution,  and  then  sometimes  we  are  not  so 
sure.  I  think  every  one  of  you  can  make 
a  very  decided  contribution. 

I  wish  I  had  the  time  to  talk  with  each 
one  of  you  and  find  out  what  conditions 
actually  are,  as  you  see  them  on  the  ground, 
in  these  foreign  countries.  But  of  course 
you  know  that  I  do  not  have  the  time  to  do 
that,  much  to  my  regret. 

But  you  ought  to  always  bear  in  mind  that 
this  country  of  ours  has  no  aggressive  am- 


bitions of  any  sort.  Our  interest  is  the  peace 
and  welfare  of  the  people  in  the  countries 
with  which  we  are  associated,  and  no  desire 
on  our  part  to  take  them  over,  either  govern- 
mentally,  financially,  physically,  or  otherwise. 

I  know  that  you  can  make  a  tremendous 
contribution  to  the  cause  of  peace  by  making 
that  perfecdy  plain  to  the  people  with  whom 
you  associate. 

Thank  you  very  much. 

note:  The  President  spoke  at  3:30  p.m.  in  his  office 
at  the  White  House.  The  group  was  composed  of 
24  missionaries  who  had  been  serving  in  China, 
Argentina,  Nigeria,  Burma,  Japan,  the  Belgian 
Congo,  Hungary,  and  the  United  States.  They  were 
headed  by  the  Rev.  Dr.  Edward  H.  Pruden,  pastor 
of  the  First  Baptist  Church  in  Washington,  the 
church  attended  by  President  Truman. 


32    Statement  by  the  President  on  Appointing  Additional 
Members  of  the  Committee  on  ReUgion  and  Welfare 
in  the  Armed  Forces.    February  8,  1950 


I  AM  appointing  two  additional  members  of 
the  President's  Committee  on  Religion  and 
Welfare  in  the  Armed  Forces.  They  are 
Mrs.  George  Hamlin  Shaw  and  Mr.  Francis 
Keppel. 


Since  this  Committee  was  established  in 
October  1948,  the  scope  of  its  work  has  grad- 
ually increased,  although  its  overall  respon- 
sibility has  remained  the  same.  That  re- 
sponsibility is  to  further  the  policy  of  the 


146 


Harry  S.  Truman,  ig^o 


Feb.  9    [33] 


Government  as  stated  in  the  Executive  order 
establishing  the  Committee:  "to  encourage 
and  promote  the  spiritual,  moral,  and  recrea- 
tional w^elfare  and  character  guidance  of  per- 
sons in  the  Armed  Forces  and  thereby  to 
enhance  the  military  preparedness  and  se- 
curity of  the  Nation,"  With  the  deactiva- 
tion of  USO  in  the  past  month,  and  the  con- 
tinued unsetded  state  of  w^orld  affairs,  the 
increasing  importance  of  this  Committee's 
vi^ork  is  apparent  to  every  thinking  citizen. 

Within  the  overall  responsibility  of  the 
Committee  there  are  three  major  areas  of 
interest  that  encompass  a  broad  range  of 
specific  policies  and  programs:  (i)  organized 
community  activities  on  behalf  of  service 
men  and  women;  (2)  civilian  attitudes  to- 
ward the  needs  of  service  men  and  women; 
and  (3)  policies  and  programs  of  the  De- 
partment of  Defense  affecting  their  religious 
and  moral  welfare. 

The  Committee's  first  annual  report, 
which  it  recendy  submitted  to  me,  shows 
that  it  already  has  accomplished  much  in 
appraising  and  helping  to  develop  activities 
and  policies  within  these  three  areas. 

A  program  has  been  developed  for  orga- 
nized services  that  will  welcome  each  serv- 
ice man  and  woman  into  community  life  as 
a  member  of  that  community.  Recommen- 
dations to  the  Secretary  of  Defense  on  the 
serious  shortage  of  housing  facilities  for  mar- 


ried military  personnel  were  approved  and 
are  now  being  put  into  effect.  The  Com- 
mittee's report  on  "Information  and  Educa- 
tion in  the  Armed  Forces"  firmly  establishes 
the  policy  to  provide  our  military  personnel 
with  the  information  and  education  they  de- 
sire and  need  for  maximum  military  eiBEec- 
tiveness. 

As  the  Committee  finishes  each  of  its 
various  studies,  it  has  a  continuing  respon- 
sibility to  maintain  an  active  interest  in  each 
subject  and  to  return  to  it  should  the  situa- 
tion require.  Therefore,  the  scope  of  its 
work  is  constantly  increasing  and  it  is  nec- 
essary that  it  have  the  additional  assistance 
available  from  the  two  additional  members 
I  have  appointed,  and  the  continuing  co- 
operation of  all  our  citizens. 

note:  The  President's  Committee  on  Religion  and 
Welfare  in  the  Armed  Forces  was  established  by 
Executive  Order  100 13  of  October  27,  1948  (3  CFR, 
1943-1948  Comp.,  p.  835).  At  that  time  the  fol- 
lowing members  were  appointed:  Frank  L.  Weil, 
chairman,  Basil  O'Connor,  Rev.  Edmund  A.  Walsh, 
Dr.  Daniel  A.  Poling,  Truman  Gibson,  Mrs.  Ferdi- 
nand Powell,  Sr.,  Dorothy  Enderis,  Dr.  Lindsley  F. 
Kimball,  and  Mark  A.  McCloskey. 

The  Committee's  first  report,  entitled  "Commu- 
nity Responsibility  to  Our  Peacetime  Servicemen 
and  Women,"  was  submitted  to  the  President  on 
March  24,  1949  (Government  Printing  Office,  1949, 
29  pp.)'  Later  the  Committee  submitted  the  report 
"Information  and  Education  in  the  Armed  Forces; 
a  Report  to  the  President"  (Government  Printing 
Office,  1949,  59  pp.). 

See  also  Item  95. 


33    Letter  to  the  Vice  President  Urging  a  Study  of  the  Land  and 
Water  Resources  of  the  New  England  States  and 
New  York.    February  9,  1950 


Dear  Mr,  Vice  President: 

I  am  informed  that  the  Senate  will  shortly 
consider  H.R.  5472,  the  rivers  and  harbors 
and  flood  control  authorization  bill.  In  addi- 
tion to  authorizing  projects  for  construction, 
this  bill  will  also  authorize  a  number  of 


investigations  and  studies  to  be  made,  look- 
ing to  future  projects  for  the  development 
and  conservation  of  our  land  and  water  re- 
sources. Such  investigations  and  studies 
should  be  carefully  planned,  so  that  all  rele- 
vant facts  will  be  considered,  and  the  result- 


147 


[33]    Feb.  9 


Public  Papers  of  the  Presidents 


ing  information  and  recommendations  will 
be  of  lasting  value  for  future  action,  both 
governmental  and  private. 

I  am  writing  this  letter  to  recommend  that 
the  Senate  adopt  an  amendment  to  H.R. 
5472  which  I  understand  is  to  be  offered  by 
a  group  of  Senators  from  the  New  England 
States  and  New  York,  providing  for  a  broad- 
scale  study  of  how  the  land  and  water  re- 
sources of  those  States  may  be  best  conserved 
and  developed  for  the  best  interests  of  their 
people  and  the  whole  Nation. 

We  are  often  inclined  to  think  that,  be- 
cause those  States  were  originally  settled 
two  hundred  years  and  more  ago,  and  be- 
cause they  led  the  Nation  for  many  years  in 
industrial  and  commercial  development,  they 
do  not  need  the  benefit  of  modern  methods 
of  resource  development  and  conservation. 
Such  a  conception  is  very  far  from  the  truth. 
New  York  and  the  New  England  States  have 
real  and  serious  problems  of  soil  and  forest 
conservation  and  management,  and  of  con- 
trolling and  using  water  to  prevent  floods, 
to  provide  domestic  and  industrial  water 
supplies,  and  to  furnish  low-cost  hydroelec- 
tric power.  These  problems  must  be  over- 
come if  these  States  are  to  participate  fully 
in  the  economic  growth  of  our  country. 

We  have  gradually  come  to  understand 
that,  if  best  results  are  to  be  achieved,  these 
problems  should  be  considered  together,  and 
met  by  comprehensive  planning  and  action 
which  recognizes  the  close  inter-relationship 
of  land  and  water  and  their  manifold  uses. 
In  many  areas  of  our  country  coordinated 
plans  have  been  worked  out  for  multiple- 
purpose,  integrated  development  of  natural 
resources.  However,  these  seven  States  have 
not,  so  far,  had  the  benefit  of  such  compre- 
hensive study  and  planning. 

Some  notable  individual  projects  have 
been  planned,  such  as  the  St.  Lawrence  sea- 
way and  power  project.  These  projects 
should,  of  course,  proceed  without  further 


delay.  No  additional  study  is  needed  before 
they  are  constructed.  They  are  obviously 
necessary  parts  of  any  broad-scale  program. 
But  a  wider  scope,  a  broader  vision,  is  needed 
if  the  full  possibilities  inherent  in  the  re- 
sources of  these  States  are  to  be  realized. 

In  the  field  of  hydroelectric  power,  for 
example,  it  is  not  enough  to  consider  each 
project  by  itself.  There  are  many  undevel- 
oped power  sites  in  the  New  England  States, 
including  the  Passamaquoddy  project,  which 
have  been  estimated  to  offer  in  the  aggregate 
as  much  as  3  million  kilowatts  of  additional 
capacity.  The  redevelopment  of  the  power 
capacity  of  Niagara  Falls,  concerning  which 
negotiations  with  Canada  are  in  progress, 
can  provide  more  than  i  million  kilowatts  of 
additional  capacity.  From  Niagara  on  the 
west,  through  the  St.  Lawrence  project, 
which  will  provide  just  under  i  million  kilo- 
watts, and  on  into  the  New  England  States, 
there  is  a  whole  range  of  projects  which 
should  be  considered  in  relation  to  each 
other.  These  projects  could  all  be  inter- 
connected by  transmission  lines.  Some  of 
them  offer  a  steady,  continuous  power  sup- 
ply; others  could  provide  the  intermittent 
supply  needed  to  meet  peak  loads.  Much  of 
this  power  could  be  produced  at  as  low  cost 
as  any  in  the  Nation. 

These  potentialities  need  to  be  thoroughly 
studied,  since  they  offer  real  possibilities  for 
increasing  the  present  power  capacity  of  New 
York  and  the  New  England  States  by  as 
much  as  50  per  cent. 

Development  of  this  great  supply  of  hydro- 
electric power,  representing  three  or  four 
times  as  much  electricity  as  we  will  obtain 
from  the  St.  Lawrence  project  alone,  would 
clearly  stimulate  the  broad  economic  devel- 
opment— industrial,  commercial,  agricul- 
tural— of  those  portions  of  the  region  which 
have  for  many  years  been  lagging  in  all- 
around  economic  progress. 

This  power  supply  would  also  be  a  power- 


148 


Harry  S.  Truman,  ig^o 


Feb.  9    [34] 


f ul  force  toward  lower  electric  rates  in  New 
York  and  New  England.  This  region  now 
includes  some  of  the  highest  electric  rate 
areas  in  the  country.  Residential  rates  in 
the  New  York  City  and  Boston  metropolitan 
areas  in  recent  years  have  been  the  highest 
of  all  cities  over  50,000  population  in  the 
country — about  one-third  higher  than  the 
national  average.  Six  of  these  seven  States 
are  among  the  ten  States  in  the  Union  hav- 
ing the  highest  power  rates  for  residential 
consumers.  The  homes,  farms,  and  indus- 
tries in  these  States  should  be  enabled  to 
share  in  the  general  downward  trend  of 
rates  and  upward  trend  of  use,  which  have 
added  so  much  to  the  prosperity  of  other 
regions. 

These  power  possibilities  are  only  one 
example  of  the  questions  of  land  and  water 
use  in  the  New  England  States  and  New 
York  which  should  be  thoroughly  studied. 
Some  of  the  worst  cases  of  water  pollution 
in  the  country  are  found  on  the  rivers  in 
these  States.  A  great  deal  should  be  done 
to  rebuild  depleted  soils,  restore  forests,  and 
increase  recreational  opportunities.  These 
and  other  resource  questions  should  be 
studied  together,  and  guidelines  laid  down 
which  will  be  useful  to  Federal,  State,  and 
local  governments  and  private  groups  in  pro- 
viding for  the  provident  husbandry  of  the 
precious  natural  resources  of  these  States. 

I  believe  that  a  sound  method  for  accom- 
plishing this  is  provided  by  the  proposed 


amendment  to  H.R.  5472.  The  amendment 
would  establish  a  study  commission  of  seven 
members,  including  citizens  from  the  region 
and  representatives  of  the  principal  Federal 
agencies  concerned.  The  Commission 
would  utilize  all  the  studies  which  have  been 
made  already,  and  would  arrange  for  such 
further  investigations  as  may  be  desirable. 
An  advisory  committee  appointed  by  the 
Governors  of  the  seven  States  would  partici- 
pate in  the  work  of  the  Commission,  and 
the  Commission's  recommendations  would 
be  submitted  to  the  Governors  for  their  com- 
ments before  submission  to  the  President  and 
to  the  Congress.  The  Commission's  final 
report  would  be  submitted  in  two  years,  after 
which  time  it  would  be  dissolved. 

These  provisions,  which  are  similar  to 
those  already  adopted  by  the  Senate  to  estab- 
lish a  study  commission  for  the  Arkansas, 
Red  and  White  River  basins,  should  result 
in  a  great  combined  program  for  wise,  per- 
manent and  economically  sound  develop- 
ment of  the  natural  resources  of  these  States. 
Such  a  program  will  be  a  stimulus  to  eco- 
nomic growth  and  prosperity  not  only  for 
those  States,  but  for  the  whole  Nation. 
Sincerely  yours, 

Harry  S.  Truman 

note:  As  enacted,  H.R.  5472  does  not  contain  the 
provisions  requested  by  the  President  (64  Stat.  163). 
See  also  his  message  to  the  Congress  upon  signing 
the  bill  (Item  140,  below). 


34    The  President's  News  Conference  of 
February  g,  1950 


THE  PRESIDENT.  I  have  no  special  announce- 
ments to  make  today.  I  will  try  my  best  to 
answer  questions,  if  they  are  not  too  com- 
plicated. 

[i.]     Q.  Mr.  President,  this  matter  is  on 
a  State  level.    Five  members  of  Virginia's 


House  of  Delegates  are  pushing  a  bill  to 
abolish  segregation  within  the  State.  Any 
comment  on  that,  sir.f* 

THE  PRESIDENT.  No.  That  is  Virginia's 
business.    I  am  glad  to  hear  it,  however. 

Q.  Mr.  President,  are  you  in  agreement 


149 


[34]    Feb.  9 


Public  Papers  of  the  Presidents 


with  the  brief  filed  by  your  Solicitor  General 
today  in  the  Supreme  Court  which  opposes 
separate  but  equal  facilities  in  the  segregated 
schools  in  Virginia? 

THE  PRESIDENT.  I  kuow  nothing  about  such 
a  brief.  I  haven't  seen  it  and  I  can't  com- 
ment on  it. 

[2.]  Q.  Mr.  President,  several  UMW 
locals  in  Illinois  have  urged  you  to  seize  the 
mines  and  put  the  profits  in  the  Treasury. 
Have  you  any  comment? 

THE  PRESIDENT.  I  have  uo  such  power  as 
that. 

Q.  What  was  the  answer? 

THE  PRESIDENT.  Thosc  are  war  powers. 

Q.  What  was  the  answer,  please? 

THE  PRESIDENT.  I  Said  I  have  no  such 
powers.    Those  were  war  powers. 

Q.  You  have  no  powers  for  seizure,  Mr. 
President? 

THE  PRESIDENT.  I  dou't  think  so.  I  hope 
not. 

Q.  Mr.  President,  there  is  no  power  to  put 
the  money  in  the  Treasury,  however,  is  there? 

THE  PRESIDENT.  No.    Never. 

Q.  Mr.  President,  do  you  know  if  anyone 
in  Government  is  preparing  a  bill  to  take 
care  of  that  power? 

THE  PRESIDENT.  No,  I  kuow  of  nothing  of 
the  kind.  I  am  not  asking  for  any  such 
power. 

[3.]  Q.  Mr.  President,  do  you  favor  a 
close  balance  between  oil  imports  and 
exports  ? 

THE  PRESIDENT.  I  cau't  commeut  on  that 
at  the  present  time  because  I  haven't  all  the 
information  on  the  subject. 

[4.]  Q.  Mr.  President,  are  you  expecting 
to  hear  from  your  factfinding  board  on  coal 
today? 

THE  PRESIDENT.  I  am  expectiug  to  hear  as 
soon  as  they  are  ready  to  report. 

Q.  You  don't  know  whether  it  will  be 
today? 

THE  PRESIDENT.  I  Can't  tell  wheu  it  will  be. 


except  they  will  report  as  soon  as  they  are 
ready.^ 

[5.]  Q.  Mr.  President,  have  you  received 
any  recommendation  from  the  Trade  Agree- 
ments Committee  regarding  negotiations 
between  the  United  States  and  Germany  on 
textile  tariffs  ? 

THE  PRESIDENT.  No,  I  haveu't. 

[6.]  Q.  Mr.  President,  the  Republicans 
say  that  the  current  issue  is  socialism  versus 
liberty.    Which  one  are  you  for,  sir? 

THE  PRESIDENT.  I  dou't  Understand  that 
very  well.  I  read  with  a  lot  of  interest  that 
Republican  platform,  but  I  think  the  Repub- 
licans' record  speaks  better  for  itself  than 
any  platform  they  can  write. 

[7.]  Q.  Mr.  President,  can  anything  be 
done  to  keep  the  Waltham  Watch  Company 
in  business? 

THE  PRESIDENT.  We  have  done  everything 
we  possibly  could.  Apparently  they  aren't 
going  to  stay  in  business. 

[8.]  Q.  Mr.  President,  do  you  plan  to 
appoint  a  committee  to  study  radio  and  tele- 
vision allocations? 

THE  PRESIDENT.  I  hadn't  thought  about  it. 

Q.  What  was  that  question,  sir? 

THE  PRESIDENT.  He  Wanted  to  know  if  I 
planned  to  appoint  a  committee  to  study 
radio  and  television  allocations.  We  have 
got  a  board  for  that  purpose.  I  do  not  sec 
any  use  for  me  to. 

[9.]  Q.  Mr.  President,  is  Secretary  Gray 
coming  in  to  resign? 

THE  PRESIDENT.  I  don't  kuow.  He  is  going 
to  see  me  after  you  fellows  get  through.  He 
has  been  trying  to  resign  for  quite  a  while, 
and  I  have  been  able  to  persuade  him  to  stay, 
up  to  date. 

Q.  No  decision  on  whether  he  is  going  to 
leave? 

THE  PRESIDENT.  No.  That  is  what  he  is 
coming  to  tell  me  this  afternoon.^ 

^  See  Item  35. 
^  See  Item  81. 


150 


Harry  S.  Truman,  ig^o 


Feb.  9    [34] 


[10.]  Q.  Mr.  President,  this  New  Eng- 
land power  letter  asks  that  Passamaquoddy 
be  considered  by  the  proposed  new  New 
England-New  York  Commission.  What 
will  be  the  relationship  of  that  commission 
to  the  International  Joint  Commission  which 
is  now  studying  Quoddy? 

THE  PRESIDENT.  The  relationship  would  be 
simply  a  coordination  of  the  whole  New 
England  power  program,  that's  all.  It 
would  not  interfere  with  the  International 
Commission  at  all.  In  fact,  I  think  it  would 
be  an  asset  to  the  International  Commission. 

[11.]  Q.  Mr.  President,  concerning  oil 
imports — the  question  that  was  asked  a 
moment  ago — Mr.  Patman  asked  you  to 
invoke  the  power  under  the  National  Trade 
Agreements.  Do  you  intend  to  submit  that 
question  to  the  Tariff  Commission  for  its 
recommendation  ? 

THE  PRESIDENT.  I  cau  give  you  the  answer 
to  that  question  better  when  I  have  all  the 
information  in  my  hands,  which  I  haven't, 
as  yet. 

[12.]  Q.  Mr.  President,  a  group  of  scien- 
tists in  New  York  recently  spoke  of  forming 
some  sort  of  citizens  commission,  created  by 
your  office,  to  make  a  complete  reevaluation 
of  our  atomic  policies? 

THE  PRESIDENT.  Did  you  read  Mr. 
Acheson's  statement  lately?  ^  I  will  advise 
you  to  read  it.  That  will  answer  your 
question. 

[13.]  Q.  Mr.  President,  is  Charles  E. 
Luckman  being  considered  for  Chairman  of 
the  Atomic  Energy  Commission? 

THE  PRESIDENT.  I  am  uot  Considering  any- 
body in  particular,  right  at  the  present  time. 
When  I  find  the  right  man,  I  will  let  you 
know  about  it  right  away. 

Q.  What  about  Luckman  in  the  National 
Security  Resources  Board? 


THE  PRESIDENT.  I  am  not  considering  Mr. 
Luckman  for  any  j  ob  whatever.  He  is  doing 
the  job  that  he  is  doing  right  now:  selling 
tickets  to  the  Democratic  dinner.^  [Laugh- 
ter] 

Q.  Well,  if  he  does  good,  might  he  be 
considered? 

THE  PRESIDENT.  He  has  douc  excellent. 
He  has  done  an  excellent  job  of  it. 

Q.  Didn't  hear  your  reply,  Mr.  President. 

THE  PRESIDENT.  I  Said  he  has  done  an  ex- 
cellent job  in  the  job  he  is  in.  Every  time 
I  have  asked  him  to  do  anything  for  me,  he 
has  done  an  excellent  job. 

[14.]  Q.  Mr.  President,  do  you  agree 
with  Senator  McMahon  that  this  is  a  time 
for  soul-searching,  nationwide  debate  on  the 
question  posed  by  the  hydrogen  bomb? 

THE  PRESIDENT.  Did  you  read  Secretary 
Acheson's  statement  yesterday?  ^ 

Q.  Yes,  sir. 

THE  PRESIDENT.  I  would  advisc  you  to  read 
it 

Q.  He  seems  not  to  think  so. 

THE  PRESIDENT. because  that  covers 

the  ground.  The  Secretary  and  I  are  in 
complete  agreement. 

Q.  He  spoke  for  you? 

THE  PRESIDENT.  He  discussed  the  matter 
with  me.  He  spoke  for  the  State  Depart- 
ment, which  is  supposed  to  represent  my 
policy  on  foreign  policy. 

[15.]  Q.  Mr.  President,  the  President  of 
the  Philippines  ^  indicated  that — after  seeing 
you  this  week — that  he  would  welcome  a 
mission  to  go  out  there  to  study  economic 
conditions  for  recovery  and  rehabilitation? 

THE  PRESIDENT.  Wc  discussed  that. 


®Mr.  Acheson's  statement  on  the  Soviet  nuclear 
explosion  and  U.S.  atomic  policy  is  printed  in  the 
Department  of  State  Bulletin  (vol.  21,  p.  487). 


*  Charles  E.  Luckman  was  chairman  of  the  1950 
National  Jefferson-Jackson  Day  Committee, 

''For  Secretary  Acheson's  statement  at  his  press 
conference  on  February  8,  see  the  Department  of 
State  Bulletin  (vol.  22,  p.  272). 

*Elpidio  Quirino  of  the  Republic  of  the  Philip- 
pines. President  Quirino  had  been  in  the  United 
States  for  medical  treatment. 


151 


[34]    Feb.  9 


Public  Papers  of  the  Presidents 


Q.  Would  you  favor  sending  such  a  com- 
mission? 

THE  PRESIDENT.  I  havc  it  undcf  considera- 
tion. 

[i6.]  Q.  Mr.  President,  getting  back  to 
Dean  Acheson,  in  other  words,  you  are  in 
hearty  approval  of  the  Secretary's  statement 
yesterday? 

THE  PRESIDENT.  Yes,  I  am  very  much  in 
approval  of  what  he  had  to  say.  We  dis- 
cussed it  for  quite  a  while  before  he  made 
the  statement.  And  if  you  will  go  back  and 
read  a  litde  history,  you  will  find  that  that 
program  has  been  a  continuing  one  ever 
since  we  first  made  the  request  through  the 
United  Nations  to  control  atomic  energy  and 
armaments  of  all  kinds. 

Our  position  hasn't  changed  a  bit.  It  has 
been  just  exactly  that  all  along.  We  have 
been  reiterating  it.  I  have  said  it  over  and 
over  and  over,  I  think  a  hundred  times,  right 
here  in  this  conference,  and  there  isn't  any 
use  getting  all  steamed  up  on  the  subject, 
because  we  are  continuing  all  the  time  every 
effort  we  possibly  can  to  create  a  peaceful 
situation  in  the  world.  And  if  we  could  get 
just  one  litde  bit  of  cooperation  from  the 
Soviet  Government,  we  could  get  the  job 
done. 

[17.]  Q.  Mr.  President,  getting  back  to 
a  local  war,  did  you  know  that  California 
and  Arizona  are  at  daggers  point  over  the 
Colorado  River  water? 

THE  PRESIDENT.  Well 

Q.  The  California  delegates  tell  me  you 
recommended  to  the  Chief  of  Engineers  that 
a  survey  be  made  to  find  an  extra  million 
feet  of  water  which  both  States  could  share. 
Do  you  have  any  idea  where  it  will  come 
from? 

THE  PRESIDENT.  No.  I  am  having  the 
water  commission  ^  make  a  complete  survey 
of  the  water  situation  in  the  United  States. 
You  know.  New  York  is  just  as  much  inter- 

^  See  Item  i. 


ested  in  the  subject  as  California  is,  and  so 
is  Baltimore,  and  so  is  Houston,  Tex.,  and 
a  half  dozen  other  cities  that  I  could  name 
to  you.  That  is  the  reason  I  appointed  this 
water  commission. 

The  water  situation  in  the  Southwest  is  in 
a  terrible  situation.  Arizona  and  California 
are  both  drying  up.  We  have  got  to  find 
some  sort  of  a  manner  in  which  to  meet  that 
situation.  And  that  is  the  reason  I  have 
appointed  that  water  commission  to  make 
a  survey.  I  hope  we  can  solve  it,  but  it  is  a 
very  delicate  and  a  very  important  problem. 
I  hope  we  will  get  it  solved  so  that  it  will  be 
all  right  for  those  States  and  places  that  I 
have  named. 

[18.]  Q.  Mr.  President,  I  would  like  to 
get  cleared  up  on  this  Acheson  thing.  Are 
we  standing  on  the  Baruch  position  or  is 
that 

THE  PRESIDENT.  Our  positiou  has  never 
changed.  The  Baruch  position  is  just  the 
same  now  as  it  was  the  day  it  was  made.® 

Q.  That  is  not  being  reconsidered? 


®  Bernard  M.  Baruch,  the  United  States  Repre- 
sentative to  the  United  Nations  Atomic  Energy 
Commission,  set  forth  the  position  of  the  United 
States  in  his  address  deUvered  at  the  opening  session 
of  the  Commission  in  New  York  City  on  June  14, 
1946. 

In  his  address  Mr.  Baruch  stated  that  "The  United 
States  proposes  the  creation  of  an  International 
Atomic  Development  Authority,  to  v^^hich  should  be 
entrusted  all  phases  of  the  development  and  use  of 
atomic  energy,  starting  -with  the  raw  materials  and 
including:  (i)  managerial  control  or  ownership  of 
all  atomic-energy  activities  potentially  dangerous  to 
world  security,  (2)  power  to  control,  inspect,  and 
license  all  other  atomic  activities,  (3)  the  duty  of 
fostering  the  beneficial  uses  of  atomic  energy,  (4) 
research  and  development  responsibilities  of  an 
affirmative  character  intended  to  put  the  Authority 
in  the  forefront  of  atomic  knowledge  and  thus  to 
enable  it  to  comprehend,  and  therefore  to  detect, 
misuse  of  atomic  energy.  To  be  effective,  the  Au- 
thority must  itself  be  the  world's  leader  in  the  field 
of  atomic  knowledge  and  development  and  thus 
supplement  its  legal  authority  with  the  great  power 
inherent  in  possession  of  leadership  in  knowledge." 

For  the  full  text  of  Mr.  Baruch's  address  see  the 
Department  of  State  Bulletin  (vol.  14,  p.  1057). 


152 


Harry  S.  Truman,  19^0 


Feb.  9    [34] 


THE  PRESIDENT.  No  rcasoii  to  rcconsidcr  it. 
It  is  just  as  good  today  as  it  ever  was. 

Q.  Not  altered  by  anything  now? 

THE  PRESIDENT.  Not  thc  slightcst.  Not  the 
slightest.  In  fact,  it  ought  to  be  more  useful 
now  than  it  was  then. 

We  thought  we  were  giving  away,  then, 
something  good.  We  were  on  an  even  keel 
then,  apparendy. 

Q.  Is  it  your  idea,  sir,  that  that  ought  to 
make  Russia  more  receptive? 

THE  PRESIDENT.  I  Can't  answer  what  Russia 
feels.  I  know  how  they  have  acted.  I  can 
only  go  on  their  actions.  I  can't  tell  you  how 
Russia  feels.  Nobody  knows.  Except  by 
their  acts  in  the  United  Nations — and  they 
have  voted  "no"  every  time.  I  don't  think 
we  have  ever  exercised  the  veto  power. 

Q.  Mr.  President,  does  the  Secretary's 
statement,  then,  foreclose  any  changes  in  the 
future  on  our  atomic  policy? 

THE  PRESIDENT.  ThcTC  is  no  rcason  for  any 
change.  We  are  attempting  to  get  inter- 
national control  of  atomic  energy  and  trying 
our  best  to  get  a  peace  in  the  world  that  will 
be  good  for  everybody.  That's  all  we  are 
after.  That's  all  we  have  ever  wanted.  That 
is  the  fundamental  basis  of  our  foreign 
policy. 

Q.  Well,  how  about  general  disarmament? 

THE  PRESIDENT.  It  is  in  the  same  category. 

Q.  Can  they  be  considered  together,  Mr. 
President? 

THE  PRESIDENT.  No,  they  caunot. 

Q.  Are  you  intending  to  say  that  you 
think  public  discussion  does  no  good? 

THE  PRESIDENT.  No,  I  am  not.  You 
needn't  put  words  of  that  kind  into  my 
mouth.    I  will  answer  your  questions 

Q.  I  thought  I  was  asking  one 

THE  PRESIDENT.  All  right,  procced.  You 
don't  put  any  words  in  my  mouth. 

Q.  Do  you  think  that  public  discussion 


will  answer  the  situation? 

THE  PRESIDENT.  Public  discussion  helps 
every  situation. 

Q.  Mr.  President,  I  didn't  quite  get  that. 
You  said  disarmaments  are  in  the  same 
category  as  what? 

THE  PRESIDENT.  As  atomic  control.  They 
are.    We  are  for  both. 

Q.  Mr.  President,  you  said  we  are  not 
ready  to  consider  atomic  disarmament  or 
atomic  agreement  and  general  disarmament 
together? 

THE  PRESIDENT.  They  go  together.  They 
are  both  in  the  same  resolution  in  the  United 
Nations,  if  you  will  read  it.  They  do  go 
together. 

Q.  We  are  for  atomic  agreement  first? 

THE  PRESIDENT.  I  would  like  to  have  that 
atomic  thing  first,  of  course,  but  they  are 
both  in  the  same  resolution  in  the  United 
Nations. 

Q.  Are  we  inflexible  on  that  point,  Mr. 
President? 

THE  PRESIDENT.  Doesu't  mean  inflexible. 
If  we  can  get  an  atomic  energy  setdement, 
we  won't  have  any  trouble  with  the  other. 

Q.  Mr.  President,  do  you  think  that  the 
Fuchs  case  possibly  aggravates  the  inter- 
national situation  with  respect  to  atomic 
energy?  ' 

THE  PRESIDENT.  I  have  uo  commcut  on 
that. 

Q.  Couldn't  hear  that  question. 

THE  PRESIDENT.  He  Wanted  to  know  if 
this  English  scientist's  case  had  any  effect  on 
that,  and  I  said  I  can't  comment  on  that. 

Reporter:  Thank  you,  Mr.  President. 

note:  President  Truman's  two  hundred  and  six- 
teenth news  conference  was  held  in  his  office  at  the 
White  House  at  4  p.m.  on  Thursday,  February  9, 
i95o« 

*Dr.  Klaus  Fuchs,  German-born,  naturalized 
British  scientist  convicted  of  having  transmitted 
secret  atomic  information  to  the  Soviet  Union. 


41-355- 


153 


[35]    Feb.  II 


Public  Papers  of  the  Presidents 


35    Letter  to  the  Attorney  General  Directing  Him  To  Petition  for  an 
Injunction  in  the  Coal  Strike.    February  ii,  1950 


My  dear  Mr,  Attorney  General: 

On  February  6,  1950,  by  virtue  of  the  au- 
thority vested  in  me  by  Section  206  of  the 
Labor  Management  Relations  Act,  1947 
(Public  Law  loi,  8oth  Congress),  I  issued 
Executive  Order  No.  10106,  creating  a  Board 
of  Inquiry  to  inquire  into  the  issues  involved 
in  a  labor  dispute  between  coal  operators  and 
associations  signatory  to  the  National  Bitu- 
minous Coal  Wage  Agreement  of  1948, 
amending  and  extending  the  National  Bitu- 
minous Coal  Wage  Agreement  of  1947,  and 
certain  of  their  employees  represented  by  the 
International  Union,  United  Mine  Workers 
of  America,  also  signatory  to  the  said 
agreement. 

On  February  11,  1950,  I  received  the 
Board's  written  report  in  the  matter,  includ- 
ing a  statement  of  the  facts  with  respect  to 
the  dispute  and  each  party's  statement  of  its 
position.  A  copy  of  that  report  is  attached 
hereto. 

In  my  opinion  this  unresolved  labor  dis- 
pute has  resulted  in  a  strike  affecting  a  sub- 
stantial part  of  an  industry  engaged  in  trade 
and  commerce  among  the  several  States  and 
with  foreign  nations,  and  in  the  production 
of  goods  for  commerce,  which  strike,  if  per- 
mitted to  continue,  will  imperil  the  national 
health  and  safety. 

I  therefore  direct  you,  pursuant  to  the 
provisions  of  Section  208  of  the  Labor  Man- 
agement Relations  Act,  1947,  to  petition  in 
the  name  of  the  United  States  any  district 


court  of  the  United  States  having  jurisdic- 
tion of  the  parties  to  enjoin  the  continuance 
of  such  strike,  and  for  such  other  relief  as 
may  in  your  judgment  be  necessary  or 
appropriate. 

Very  sincerely  yours, 

Harry  S.  Truman 

[Honorable  J.  Howard  McGrath,  The  Attorney 
General,  Washington,  D.C.] 

note:  Executive  Order  10 106  is  entitled  "Creating 
a  Board  of  Inquiry  to  Report  on  a  Labor  Dispute 
Affecting  the  Bituminous  Coal  Industry  of  the 
United  States"  (3  CFR,  1 949-1 953  Comp.,  p.  300). 
The  Board's  report,  submitted  on  February  11  by 
David  L.  Cole,  chairman,  and  John  T.  Dunlop  and 
W.  Willard  Wirtz,  members,  is  entiried  "Report  to 
the  President:  The  Labor  Dispute  in  the  Bituminous 
Coal  Industry"  (8  pp.,  Government  Printing  Office, 

1950). 

The  report  revievi^ed  the  negotiations  which  had 
been  carried  on  during  the  previous  8  months  and 
stated  that  the  parties  had  been  more  concerned 
with  gaining  tactical  advantages  than  with  trying 
to  solve  their  problems  by  reaching  an  agreement. 
It  concluded  that  the  imperative  needs  of  the  coun- 
try were  such  as  to  require  the  immediate  resump- 
tion of  the  production  of  coal. 

The  report  was  followed  on  the  same  day  by  a 
Federal  court  injunction  against  the  continuance  of 
the  strike.  When  the  miners  refused  to  return  to 
work,  the  Government  initiated  contempt  proceed- 
ings against  the  union.  On  March  2  the  Federal 
district  court  in  Washington,  D.C.,  found  the  union 
not  guilty  on  the  ground  that  the  Government  had 
failed  to  produce  sufficient  evidence  to  support  its 
charges. 

The  controversy  ended  on  March  5  with  the  sign- 
ing of  a  new  contract  between  the  mine  operators 
and  the  miners. 

See  also  Items  27,  49,  and  50. 


154 


Harry  S.  Truman,  igp 


Feb.  13    [36] 


36    Special  Message  to  the  Congress  Transmitting  Report  on  the 
Training  of  Veterans  Under  the  Servicemen's 
Readjustment  Act.    February  13,  1950 


To  the  Congress  of  the  United  States: 

In  the  Budget  Message  for  195 1,  I  stated 
that  there  is  some  question  whether  some  of 
the  training  being  received  by  veterans  un- 
der the  Servicemen's  Readjustment  Act  is 
conforming  to  the  original  sound  objectives 
of  the  law.  I  also  said  that  I  had  asked  the 
Administrator  of  Veterans  Affairs  and  the 
Director  of  the  Bureau  of  the  Budget  to 
study  this  situation  thoroughly  and  to  rec- 
ommend to  me  any  corrective  measures,  ad- 
ministrative or  legislative,  which  should  be 
taken  to  assure  that  our  expenditures  for  this 
program  yield  a  proper  return  both  to  the 
veterans  and  to  the  Nation  as  a  whole. 

The  contribution  which  the  Servicemen's 
Readjustment  Act  has  made  to  the  postwar 
development  of  the  Nation's  most  important 
resource — its  young  men  and  women — ^is 
very  great.  It  is  now  approximately  four 
years  after  general  demobilization.  During 
these  four  years  the  overwhelming  propor- 
tion of  all  veterans  have  completed  their 
readjustment  or  moved  far  in  that  direction. 
For  the  great  majority  of  those  who  have 
made  use  of  the  education  and  training  pro- 
visions of  the  Servicemen's  Readjustment 
Act,  the  law  has  been  of  real  and  lasting 
service.  A  great  deal  of  fine  education  and 
training  has  been  provided.  The  Nation 
will  be  better  prepared  to  face  the  difficult 
problems  of  the  future  because  of  the  im- 
proved education  and  skills  provided  to  mil- 
lions of  its  worthy  and  capable  young  men 
and  women. 

Because  the  law  has  contributed  eflfectively 
to  the  successful  transition  of  so  many  vet- 
erans, I  am  confident  that  veterans  and  non- 
veterans  alike  will  wish  to  see  that  the 


record  of  the  Servicemen's  Readjustment  Act 
shall  not  be  blemished  by  the  belated  growth 
of  certain  kinds  of  trade  and  vocational 
training  which  do  not  contribute  materially 
to  the  prompt  and  constructive  readjustment 
of  veterans.  It  was  this  conviction  which 
led  me  to  ask  for  a  careful  study  of  this 
aspect  of  the  veterans'  training  program. 

The  Administrator  of  Veterans  Affairs  and 
the  Director  of  the  Bureau  of  the  Budget 
have  now  reported  to  me.  Their  report 
makes  it  clear  that  the  recent  rapid  increase 
in  trade  and  vocational  training  has  included 
training  of  less  than  acceptable  quality.  In  a 
number  of  cases,  veterans  have  not  received 
instruction  which  meets  reasonable  stand- 
ards. In  a  good  many  instances  veterans 
have  been  trained  for  occupations  for  which 
they  are  not  suited  or  for  occupations  in 
which  they  will  be  unable  to  find  jobs  when 
they  finish  their  training. 

It  seems  evident  that  each  time  a  course 
of  trade  and  vocational  training  does  not 
contribute  in  a  substantial  way  to  the  oc- 
cupational readjustment  of  a  veteran,  it  con- 
stitutes a  failure  of  that  portion  of  the  pro- 
gram. Such  failure  is  cosdy  to  the  veteran, 
to  his  family,  and  to  the  Nation.  While 
nothing  that  we  may  do  can  entirely  elimi- 
nate such  failures,  I  feel  that  steps  can  and 
should  be  taken  to  give  greater  assurance  that 
every  trade  and  vocational  course  under  the 
Servicemen's  Readjustment  Act  will  provide 
good  quality  training  and  will  in  each  in- 
stance help  a  veteran  to  complete  his  occu- 
pational readjustment  and  find  satisfactory 
employment. 

The  report  of  the  Administrator  of  Vet- 
erans Affairs  and  the  Director  of  the  Bureau 


155 


[36]    Feb.  13 


Public  Papers  of  the  Presidents 


of  the  Budget,  which  I  transmit  herewith, 
contains  recommendations  to  achieve  this 
purpose.  I  commend  the  report  to  the  Con- 
gress. In  the  interest  of  veterans  as  indi- 
viduals and  in  the  interest  of  the  Nation, 
I  urge  that  the  Congress  take  suitable  action, 
as  it  has  done  previously  with  respect  to  other 
types  of  training,  to  assure  that  all  trade  and 
vocational  training  conforms  with  the  origi- 


nal sound  intent  of  the  Servicemen's  Re- 
adjustment Act. 

Harry  S.  Truman 

note:  The  joint  report  of  the  Administrator  of 
Veterans  Affairs  and  the  Director  of  the  Bureau  of 
the  Budget  is  printed  in  House  Document  466  (8ist 
Cong.,  2d  sess.). 

On  July  13,  1950,  the  President  approved  the 
Veterans*  Education  and  Training  Amendments  of 
1950  (64  Stat.  336). 


37    Address  Before  the  Attorney  General's  Conference  on 
Law  Enforcement  Problems.    February  15,  1950 


Mr.  Attorney  General,  and  gentlemen  of  the 
Conference: 

When  the  Attorney  General  told  me  of  his 
plan  to  hold  this  Conference,  I  welcomed 
the  idea.  It  seemed  to  me  that  it  v^rould  be 
most  useful  for  Federal,  State,  and  local 
oflScials  concerned  with  law  enforcement 
problems  to  gather  together  to  devise  ways 
and  means  of  making  law  enforcement  better 
and  more  effective. 

There  has  been  a  substantial  postwar  in- 
crease in  crime  in  this  country,  particularly 
in  crimes  of  violence.  This  is  disturbing, 
but  it  is  one  of  the  inevitable  results  of  war, 
and  the  dislocations  that  spring  from  war. 
It  is  one  of  the  many  reasons  why  we  must 
work  with  other  nations  for  a  permanent 
peace. 

I  might  remind  you  that  after  every  war 
this  country  has  ever  been  engaged  in,  we 
have  had  exactly  the  same  problems  to  face. 
After  the  Revolutionary  War  we  had  al- 
most exacdy  the  same  problems  with  which 
we  are  faced  now,  out  of  which  came  the 
Alien  and  Sedition  laws,  which  we  finally 
had  to  repeal  because  they  did  not  agree  with 
the  Bill  of  Rights.  Then,  after  the  War 
Between  the  States,  or  the  Civil  War,  we 
had  all  sorts  of  banditry.  My  State  was 
famous  for  some  of  the  great  bandits  of  that 
time,  if  you  recall.    We  had  the  same  situa- 


tion after  World  War  I.  We  had  a  terrible 
time  then  with  the  increase  in  crimes  of 
violence.  We  managed  to  handle  the  situa- 
tion, and  I  am  just  as  sure  as  I  stand  here 
that  we  will  do  it  again. 

This  postwar  increase  in  crime  has  been 
accompanied  by  a  resurgence  of  underworld 
forces — ^forces  which  thrive  on  vice  and 
greed.  This  underworld  has  used  its  re- 
sources to  corrupt  the  moral  fiber  of  some  of 
our  citizens  and  some  of  our  communities. 
It  carries  a  large  share  of  the  responsibility 
for  the  general  increase  in  crime  in  the  last 
few  years. 

This  is  a  problem  that,  in  one  degree  or 
another,  affects  every  community  in  the 
country,  and  every  level  of  government. 
Our  rural  areas  as  well  as  our  cities  are 
involved  in  this. 

It  is  important,  therefore,  that  we  work 
together  in  combating  organized  crime  in  all 
its  forms.  We  must  use  our  courts  and  our 
law  enforcement  agencies,  and  the  moral 
forces  of  our  people,  to  put  down  organized 
crime  wherever  it  appears. 

At  the  same  time,  we  must  aid  and  en- 
courage gentler  forces  to  do  their  work  of 
prevention  and  cure.  These  forces  include 
education,  religion,  and  home  training, 
family  and  child  guidance,  and  wholesome 
recreation. 


156 


Harry  S.  Truman,  ig^o 


Feb.  15    [37] 


The  most  important  business  in  this 
Nation — or  any  other  nation,  for  that  mat- 
ter— is  raising  and  training  children.  If 
those  children  have  the  proper  environment 
at  home,  and  educationally,  very,  very  few 
of  them  ever  turn  out  wrong.  I  don't  think 
we  put  enough  stress  on  the  necessity  of 
implanting  in  the  child's  mind  the  moral 
code  under  which  we  live. 

The  fundamental  basis  of  this  Nation's 
law  was  given  to  Moses  on  the  Mount.  The 
fundamental  basis  of  our  Bill  of  Rights 
comes  from  the  teachings  which  we  get  from 
Exodus  and  St.  Matthew,  from  Isaiah  and 
St.  Paul.  I  don't  think  we  emphasize  that 
enough  these  days. 

If  we  don't  have  the  proper  fundamental 
moral  background,  we  will  finally  wind  up 
with  a  totalitarian  government  which  does 
not  believe  in  rights  for  anybody  except  the 
state. 

Above  all,  we  must  recognize  that  human 
misery  breeds  most  of  our  crime.  We  must 
wipe  out  our  slums,  improve  the  health  of 
our  citizens,  and  eliminate  the  inequalities 
of  opportunity  which  embitter  men  and 
women  and  turn  them  toward  lawlessness. 
In  the  long  run,  these  programs  represent 
the  greatest  of  all  anticrimc  measures. 

And  I  want  to  emphasize,  particularly, 
equality  of  opportunity.  I  think  every  child 
in  the  Nation,  regardless  of  his  race,  creed, 
or  color,  should  have  the  right  to  a  proper 
education.  And  when  he  has  finished  that 
education,  he  ought  to  have  the  right  in 
industry  to  fair  treatment  in  employment. 
If  he  is  able  and  willing  to  do  the  job,  he 
ought  to  be  given  a  chance  to  do  that  job, 
no  matter  what  his  religious  connections  are, 
or  what  his  color  is. 

I  am  particularly  anxious  that  we  should 
do  everything  within  our  power  to  protect 
the  minds  and  hearts  of  our  children  from 
the  moral  corruption  that  accompanies  or- 
ganized crime.    Our  children  are  our  great- 


est resource,  and  our  greatest  asset — ^the  hope 
of  our  future,  and  the  future  of  the  world. 
We  must  not  permit  the  existence  of  condi- 
tions which  cause  our  children  to  believe 
that  crime  is  inevitable  and  normal.  We 
must  teach  idealism — ^honor,  ethics,  decency, 
the  moral  law.  We  must  teach  that  we 
should  do  right  because  it  is  right,  and  not 
in  the  hope  of  any  material  reward.  That 
is  what  our  moral  code  is  based  on:  do  to 
the  other  fellow  as  you  would  have  him  do 
to  you.  If  we  would  continue  that  all 
through  our  lives,  we  wouldn't  have  orga- 
nized crime — ^if  everybody  would  do  that. 

Our  local.  State,  and  Federal  law  enforce- 
ment agencies  have  a  major  role  to  play  in 
this  whole  task  of  crime  suppression. 

As  law  enforcement  officers  you  have  great 
powers.  At  the  same  time  you  must  never 
forget  that  hand  in  hand  with  those  powers 
go  great  responsibilities.  You  must  make 
certain  that  these  powers  are  not  used  for 
personal  gain,  or  from  any  personal  motive. 
Too  often  organized  crime  is  made  possible 
by  corruption  of  law  enforcement  officials. 

But,  far  more  than  that,  we  must  always 
remember  that  you  are  officers  of  the  law  in 
a  great  democratic  nation  which  owes  its 
birth  to  the  indignation  of  its  citizens  against 
the  encroachment  of  police  and  governmen- 
tal powers  against  their  individual  freedoms. 

Now  there  isn't  any  difference,  so  far  as  I 
can  see,  in  the  manner  in  which  totalitarian 
states  treat  individuals  than  there  is  in  the 
racketeers'  handling  of  these  lawless  rackets 
with  which  we  are  sometimes  faced.  And 
the  reason  that  our  Government  is  strong, 
and  the  greatest  democracy  in  the  world,  is 
because  we  have  a  Bill  of  Rights. 

You  should  be  vigilant  to  enforce  the  laws 
which  protect  our  citizens  from  violence  or 
intimidation  in  the  exercise  of  their  constitu- 
tional and  legal  rights.  The  strength  of  our 
institutions  depends  in  large  measure  upon 
the  vigorous  efforts  to  prevent  mob  violence. 


157 


[37]    Feb.  15 


Public  Papers  of  the  Presidents 


and  other  forms  of  interference  with  basic 
rights — the  right  to  a  fair  trial,  the  right  to 
vote,  and  the  right  to  exercise  freedom  of 
speech,  assembly,  and  petition. 

It  is  just  as  much  your  duty  to  protect  the 
innocent  as  it  is  to  prosecute  the  guilty.  The 
friendless,  the  weak,  the  victims  of  prejudice 
and  public  excitement  are  entitled  to  the 
same  quality  of  justice  and  fair  play  that  the 
rich,  the  powerful,  the  well-connected,  and 
the  fellow  with  pull  thinks  he  can  get. 

Moreover,  the  guilty  as  well  as  the  inno- 
cent are  entitled  to  due  process  of  law.  They 
are  entided  to  a  fair  trial.  They  are  entitled 
to  counsel.  They  are  entitled  to  fair  treat- 
ment from  the  police.  The  law  enforcement 
officer  has  the  same  duty  as  the  citizen — 
indeed,  he  has  a  higher  duty — ^to  abide  by 
the  letter  and  spirit  of  our  Constitution  and 
laws.  You  yourselves  must  be  careful  to 
obey  the  letter  of  the  law.  You  yourselves 
must  be  intellectually  honest  in  the  enforce- 
ment of  the  law. 

Now  as  President  of  the  United  States,  I 
have  the  most  honorable  and  the  greatest 
job  in  the  world — the  greatest  position  that 
can  come  to  any  man  on  earth.  I  am  in- 
vested with  certain  great  powers  by  the  Con- 
stitution of  the  United  States  in  the  opera- 
tion of  the  Government  of  the  United  States. 
But  I  was  put  into  this  place  by  the  people  of 
the  United  States.  I  am  the  servant  of  the 
people.  And  in  the  first  place,  I  am  a  citizen 
of  this  great  country.  And  as  a  citizen  it 
is  my  duty  as  President  of  the  United  States 
to  be  exceedingly  careful  in  obedience  to  the 
Constitution  and  the  laws  of  this  great 
Nation. 

I  believe  that  as  President  it  is  necessary 
for  me  to  be  more  careful  in  obeying  the  laws 
than  for  any  other  person  to  be  careful.  I 
never  infringe  a  traffic  rule.  I  never  exer- 
cise the  prerogatives  which  I  sometimes  have 
of  going  through  red  lights.  I  never  exer- 
cise the  prerogative  of  taking  advantage  of 


my  position  as  President  of  the  United  States, 
because  I  believe,  first,  that  I  am  a  citizen, 
and  that  as  a  citizen  I  ought  to  obey  the  laws 
first  and  foremost. 

And  every  one  of  you  has  that  same  re- 
sponsibility. You  yourselves,  as  I  said,  must 
be  intellectually  honest  in  the  enforcement 
of  the  Constitution  and  the  laws  of  the 
United  States.  And  if  you  are  not,  you  are 
not  a  good  public  official. 

I  know  that  it  would  be  easier  to  catch  and 
jail  criminals  if  we  did  not  have  a  Bill  of 
Rights  in  our  Federal  and  State  constitutions. 
But  I  thank  God  every  day  that  it  is  there, 
that  that  Bill  of  Rights  is  a  fundamental  law. 
That  is  what  distinguishes  us  from  the 
totalitarian  powers.  I  am  confident  that  you 
share  these  convictions  with  me,  and  that 
you  will  not  lose  sight  of  them  in  your  efforts 
to  wipe  out  organized  crime  and  reduce 
lawlessness. 

I  know  that  your  discussions  here  will  be 
fruitful.  I  hope  that  you  develop  a  sound 
plan  by  means  of  which  the  cooperative  ef- 
forts of  every  American  law  enforcement 
agency  will  be  efiFectively  brought  to  bear 
upon  organized  crime. 

Your  task  does  not  end  with  today's  meet- 
ing. It  only  begins  with  today's  meeting. 
The  spade  work  must  be  done  in  the  com- 
munities where  you  live  and  work.  It  will 
be  your  task  to  mobilize  local  opinion  and 
resources  against  organized  crime  and  the 
conditions  which  create  it. 

In  this  task  I  pledge  my  wholehearted 
support. 

Thank  you  very  much. 

note:  President  Truman  spoke  at  10:05  a-^*  i^  the 
Department  of  Justice  Auditorium  in  Washington. 
In  his  opening  words  he  referred  to  J.  Howard 
McGrath,  Attorney  General  of  the  United  States. 

Among  the  organizations  participating  in  the 
I -day  conference  were  the  Department  of  Justice, 
the  National  Association  of  Attorneys  General  of 
the  United  States,  the  United  States  Conference  of 
Lawyers,  and  the  National  Institute  of  Municipal 
Law  Officers. 


158 


Harry  S.  Truman,  igp 


Feb.  i6    [38] 


38    The  President's  News  Conference  of 
February  16,  1950 


THE  PRESIDENT.  Gentlemen,  I  have  no  par- 
ticular announcements  to  make.  If  you 
have  any  questions,  I  vi^ill  try  to  answer 
them. 

[i.]  Q.  Mr.  President,  you  wtXQ  quoted 
yesterday  as  having  said  that  if  it  had  not 
been  for  the  1948  campaign,  you  would  have 
sent  Justice  Vinson  to  Moscow,  and  that 
maybe  that  would  be  a  thing  to  do  sometime 
in  the  future.    Is  that  correct?  ^ 

THE  PRESIDENT.  Did  you  read  the  quota- 
tion in  the  paper,  Smitty?  ^ 

Q.  Yes,  sir. 

THE  PRESIDENT.  Read  it  again.  That  will 
answer  your  question. 

Q.  Well,  that  is 

THE  PRESIDENT.  Read  it  again.  That  will 
answer  your  question. 

[2.]  Q.  Mr.  President,  was  that  inter- 
view authorized  in  that  form? 

THE  PRESIDENT.   It  WaS. 

Q.  Mr.  President,  does  that  represent  a 
softening  of  your  attitude  toward  columnists, 
and  vice  versa? 

THE  PRESIDENT.   No,  it  doeS  UOt. 

[The  White  House  Official  Reporter  stated  that 
there  tvas  a  period  of  silence  at  this  point. 1 

May  I  say  to  you  gentlemen  right  now — 
you  seem  to  be  in  a  kind  of  disgruntled  mood 
this  morning — that  the  President  is  his  own 

*  The  reporter  was  referring  to  an  exclusive  inter- 
view that  the  President  had  granted  to  Arthur 
Krock,  chief  Washington  correspondent  of  the  New 
York  Times,  on  February  14. 

In  his  report  of  the  interview,  Mr.  Krock  quoted 
the  President  as  having  said  that  he  would  have 
sent  Chief  Justice  Fred  M.  Vinson  to  Moscow  in  the 
fall  of  1948  except  for  the  political  campaign  then 
in  progress  and  that  perhaps  he  might  send  him 
on  such  a  mission  sometime  in  the  future. 

The  text  of  the  interview,  as  printed  in  the  New 
York  Times  on  February  15,  is  also  published  in 
the  Congressional  Record  (vol.  96,  p.  A 1272). 

*  Merriman  Smith  of  the  United  Press  Associations. 


free  agent.  He  will  see  whom  he  pleases, 
when  he  pleases,  and  say  what  he  pleases  to 
anybody  that  he  pleases.  And  he  is  not  cen- 
sored by  you,  or  anybody  else. 

I  have  tried  my  best  to  be  as  courteous  to 
you  gentlemen  as  I  possibly  can  be,  and  I 
expect  to  continue  that.  But  I  don't  like 
your  attitude  this  morning,  so  just  cool  ofE. 
[Laughter] 

Q.  Mr.  President,  inasmuch  as  I  am  not 
disgruntled 

THE  PRESIDENT.  Of  course  you  are  not — of 
course  you  are  not. 

Q. 1  might  say  to  you,  sir,  as  I  used 

to  work  in  the  newspaper  game — {laugh- 
ter]— that  that  particular  type  of  thing  is 
a — these  fellows  feel,  I  think,  that  it  is  a 
reflection  on  every  bureau  chief  and  reporter 
in  the  White  House 

THE  PRESIDENT.  It  is  nothing  of  the  kind. 

Q.  I  beg  your  pardon.? 

THE  PRESIDENT.  It  is  nothing  of  the  kind. 

Q.  That  is  their  attitude,  and  I  hope  that 
you  will  pardon  me  if  I  bring  that  to  your 
attention? 

THE  PRESIDENT.  That's  all  right,  but  it's 
nothing  of  the  kind.  But  I  don't  stand  for 
anybody  to  edit  my  actions.  I  am  a  free 
agent,  even  if  I  am  the  President  of  the 
United  States. 

Q.  Mr.  President,  did  you  intentionally 
omit  "damn".? 

THE  PRESIDENT.  Ycs,  I  Intentionally 
omitted  it.  I  could  put  it  in,  if  you  would 
like  to  have  it.     [Laughter] 

Q.  Where  should  it  go  in,  Mr.  President — 
the  "damn".? 

THE  PRESIDENT.  What.? 

Q.  Where  does  it  go  in.? 
THE  PRESIDENT.  Put  your  question  in,  and 
I  will  edit  it  for  you.     [More  laughter] 
Now  then,  have  you  got  any  questions 


159 


[38]    Feb.  i6 


Public  Papers  of  the  Presidents 


that  I  can  answer  sensibly?  If  you  have,  I 
will  listen  to  them. 

Q.  Fm  sorry — ^I  think  this  is  not  a  criti- 
cism of  your  right  to  do  as  you  please,  but 
of  our  understanding  as  to  whether  others 
may  also  obtain  exclusive  and  private  inter- 
views? 

THE  PRESIDENT.  That  remains  to  be  seen. 
I  will  cross  that  bridge  when  I  get  to  it. 

[3.]  Q.  Mr.  President,  getting  back  to 
this  question — ^that  direct  question  which 
Mr.  Smith  just  asked,  you  were  quoted  in  this 
interview  as  saying  that  you  might  have  sent 
Chief  Justice  Vinson  to  try  to  straighten  out 
Stalin  and  other  Russian  leaders  on  our  real 
intentions.  Then  you  were  quoted  as  saying 
maybe  that  will  be  the  thing  to  do  sometime. 
How  about  this  question,  sir  ?  Do  you  think 
that  time  has  come? 

THE  PRESIDENT.  No,  I  do  nOt. 

[4.]  Q.  Mr.  President,  could  I  return 
with  the  feeling  only  of  wanting  informa- 
tion  

THE  PRESIDENT.  Sure.  I  will  give  you  any 
information  I  can — ^that  I  am  capable  of. 

Q. ^that  your  giving  of  interviews  goes 

by  favor,  and  there  is  no  longer  a  rule?  We 
were  under  the  impression  that  there  was  a 
rule  which  had — custom,  at  least,  which  had 
the  binding  force  of  a  rule? 

THE  PRESIDENT.  It  is  a  custom.  I  will  con- 
tinue that  custom 

Q.  But  you  will 

THE  PRESIDENT. ^but  I  wiU  do  as  I  pleasc 

with  regard   to   breaking  it.     [Laughter^ 

Q.  Yes  sir.  That  is  the  information  that 
I  want. 

THE  PRESIDENT.  That  is  the  answer.  You 
have  the  information.  And  I  am  not  dis- 
gruntled in  the  slightest.     [More  laughter] 

Q.  Why  should  you  be? 

THE  PRESIDENT.  I  am  in  as  good  a  humor 
as  I  can  possibly  be,  but  I  would  like  to 


answer  some  questions  that  have  a  bearing 
on  the  present  situation. 

Q.  I  will  give  you  one,  Mr.  President. 

Q.  You  think  our  business  is  quite  im- 
portant, do  you? 

THE  PRESIDENT.  Sometimes  I  am  not  so 
sure. 

Q.  Mr.  President,  can  you 

THE  PRESIDENT.  What  is  it? 

[5.]     Q. Mr.  President,  one  of  your 

callers  yesterday  said  that  he  got  the  impres- 
sion that  you  plan  to  campaign  extensively 
this  year,  after  the  nominees  were  in.  He 
mentioned  the  States  of  Ohio  and  Pennsyl- 
vania? 

THE  PRESIDENT.  I  think  I  made  a  statement 
to  this  press  conference  sometime  back  that 
I  was  not  dabbling  in  any  Democratic  pri- 
maries outside  of  the  State  of  Missouri,  but 
that  after  the  primaries  were  over  I  will  be 
willing  to  help  the  Democrats  to  win  in  any 
State  in  the  Union. 

Q.  Could  you  tell  us 

THE  PRESIDENT.  That  is  aloug  the  same 
line. 

Q.  Yes.  Inasmuch  as  he  mentioned  two 
States,  could  you  mention  perhaps  some 
other  States? 

THE  PRESIDENT.  No.  Let's  attend  to  that 
when  we  get  to  it.  I  will  take  you  on  a 
nonpolitical  tour,  one  of  these  days,  and  111 
show  you.     [Laughter] 

[6.]  Q.  Mr.  President,  about  that  Mis- 
souri primary,  have  you  got  any  word 
whether  Forrest  Smith  is  going  to  be  at  the 
dinner  tonight?  ^ 

THE  PRESIDENT.  I  beg  your  pardon? 

Q.  Have  you  got  any  word  as  to  whether 
Forrest — Governor  Smith  will  or  will  not  be 
at  the  dinner  tonight? 

THE  PRESIDENT.  He  wiU  be  at  the  dinner. 

Q.  He  will  be  at  the  dinner? 

'Jefferson-Jackson  Day  Dinner.     Sec  Item  39. 


160 


Harry  S.  Truman,  ig^o 


Feb.  i6    [38] 


THE  PRESIDENT.  He  wiU  bc  at  the  dinner. 
At  least,  if  the  weather  is  good  to  fly  in  this 
morning  he  will  be  there. 

Q.  Mr.  President,  he  wired  John  Hen- 
dren  ^  that  the  National  Guard  wouldn't  let 
him  take  ofl. 

THE  PRESIDENT.  That  was  yesterday,  not 
today. 

Q.  Has  the  weather  changed? 

THE  PRESIDENT.  There  is  not — ^I  don't 
know — ^you  know,  weather  conditions 
change  from  day  to  day.  I  rather  think  he 
will  be  here. 

[7.]  Q.  Mr.  President,  do  you  have  any 
comment  on  the  agreement  between  Russia 
and  the  Communist  government  of  China? 

THE  PRESIDENT.  I  have  no  comment,  for  I 
haven't  myself  personally — I  haven't  read 
the  treaty  and  don't  know  what  it  contains. 
I  think  Dean  Acheson  covered  the  matter 
very  well  yesterday.*^ 

[8.]  Q.  Mr.  President,  do  you  approve 
of  the  selling  of  hundred-dollar  tickets  for 
tonight's  dinner  to  civil  service  employees 
who  are  nonpolitical  employees? 

THE  PRESIDENT.  If  they  waut  to  buy  a 
ticket,  they  are  at  liberty  to  buy  one.  I 
don't  think  their  civil  rights  have  been  in- 
fringed upon  in  the  slightest. 


*John  H.  Hendren,  chairman,  Missouri  Demo- 
cratic State  Committee. 

"The  New  York  Times  reported  on  February  16 
that  Secretary  Acheson,  in  his  press  conference  of 
February  15,  had  warned  the  Chinese  people  that 
their  troubles  with  the  Soviet  Union  had  only  begun 
with  the  signing  of  the  Sino-Soviet  Pact.  The 
treaty  of  alliance  between  the  two  countries  was 
signed  in  Moscow  on  February  15. 

Secretary  Acheson  was  quoted  as  saying  that  even 
if  the  full  sum  of  the  Soviet  Union's  promised  eco- 
nomic aid — ^$300  million  over  a  5-year  period — ^was 
forthcoming,  it  would  be  meager  in  comparison  with 
the  great  economic  needs  of  China.  He  further 
stated  that  the  most  significant  features  of  the  new 
agreements  were  probably  covered  by  secret  proto- 
cols that  would  never  bc  made  public,  but  that 
could  be  measured  only  by  Russian  conduct  in 
China  in  the  months  and  years  to  come. 


[9.]  Q.  Mr.  President,  speaking  of  civil 
rights,  don't  you  think  that  a  Federal  law 
against  bigtime  gambling  is  just  as  important 
as  Federal  laws  against  lynching 

THE  PRESIDENT.  Well  uow,  that  is  a  matter 
that  will  have  to  be  worked  out  by  the  At- 
torney General.  That  is  not  in  my  immedi- 
ate department.  I  am  not  a  criminal  en- 
forcement officer.  I  will  take  the  advice  of 
the  Attorney  General  on  the  subject. 

Q.  Mr.  President,  have  you  ever  advocated 
a  Federal  law  against  gambling? 

THE  PRESIDENT.  No.  I  uevcr — it  has  uever 
come  up  for  consideration. 

Q.  I  do  not  understand  the  question. 

THE  PRESIDENT.  No.  No,  it  has  nevcr 
come  up  for  consideration.  I  think  all  sorts 
of  lawlessness  ought  to  be  stopped  by  any 
measure  that  is  possible  to  stop  it.  I  think, 
in  enforcing  the  Federal  law,  that  we  must 
always  be  careful  that  the  civil  rights  part 
of  the  Constitution  is  not  infringed  upon. 
That  is  what  I  tried  to  make  perfecdy  clear 
in  my  speech  yesterday.® 

Q.  I  beg  your  pardon — ^in  this  particular 
jurisdiction,  where  we  have  two  or  three 
counties — ^two  States  and  a  Federal  jurisdic- 
tion— ^District  of  Columbia — ^we  have  found 
here,  according  to  the  grand  jury,  that  it  is 
impossible  to  enforce  laws  against  gambling 
without  the  addition  of  some  interstate  mat- 
ter or  help  of  the  Federal  Government.  That 
is  the  report  of  the  grand  jury. 

THE  PRESIDENT.  WcU,  that  ought  to  be 
remedied. 

Q.  You  understand  about  that? 

THE  PRESIDENT.  Yes.  That  ought  to  be 
remedied. 

Q.  That  ought  to  be  remedied  ? 

THE  PRESIDENT.  That  ought  to  be  rem- 
edied, of  course. 

[10.]  Q.  Mr.  President,  do  you  agree 
with  Mr.  Churchill  that  another  top  level 
•item  37. 


41-355— ^©5 


-14 


161 


[38]    Feb.  16 


Public  Papers  of  the  Presidents 


conference  with  Mr.  Stalin  might  achieve 
some  resuhs?  ^ 

THE  PRESIDENT.  I  have  no  comment  to 
make  on  Mr.  Churchill's  statement.  I  have 
always  said  that  the  door  is  open  here  in 
Washington.  Any  time  any  head  of  state 
wants  to  come  and  visit  me,  he  is  welcome. 

Q.  You  still  want  it  to  be  held  here  in 
Washington? 

THEPRESmENT.   Ycs. 

Q.  Mr.  President,  do  you  think  Mr. 
Churchill  is  just  electioneering? 

THE  PRESIDENT.  That  qucstiou  I  do  not 
want  to  answer. 

[11.]  Q.  Mr.  President,  did  you  tell 
Charles  Luckey  ®  that  you  might  be  a  can- 
didate for  President? 

THE  PRESIDENT.  He  drew  that  conclusion. 
[Laughterl 

Q.  Did  you  indicate  to  him  that  you  might 
be  a  candidate? 

THE  PRESIDENT.  He  drew  that  conclusion. 
[Laughter] 

[12.]  Q.  To  return  to  Missouri  politics 
once  more,  Chairman  John  Hendren  told  a 
group  of  Missouri  Democrats  at  luncheon 
yesterday  that  it  is  his  understanding  that 
the  Hatch  Act  will  not  prohibit  Government 
workers  from  joining  the  Missouri  State 
Democratic  clubs,  that  they  could  not  be 
solicited  while  at  work  but  they  could  solicit 
them  at  home. 

THE  PRESIDENT.  I  think  the  Government 
employee,  when  he  is  through  with  his  Gov- 
ernment work,  can  do  anything  he  pleases 
that  does  not  infringe  upon  the  criminal  law. 

^The  New  York  Times  reported  on  February  15 
that  former  British  Prime  Minister  Winston  S. 
Churchill  spoke  at  Usher  Hall  in  Edinburgh,  Scot- 
land, on  February  14.  The  Times  quoted  Mr. 
Churchill  as  stating  that  a  new  "top  level"  attempt 
to  reach  an  agreement  with  the  Soviet  Union  for  the 
control  of  the  atomic  bomb  and  an  end  to  the  cold 
war  should  be  instigated. 

®  George  (Charles)  Luckey,  vice  chairman  of  the 
California  Democratic  State  Committee. 


I  think  he  has  the  same  rights  as  any  other 
citizen  of  the  United  States,  and  if  he  hasn't 
he  ought  to  have. 

Q.  Mr.  President,  the  Hatch  Act— that 
doesn't  say  that.f* 

THE  PRESIDENT.  The  Hatch  Act  is  specific 
in  that  particular.  You  ought  to  read  it  very 
carefully.  I  am  pretty  familiar  with  the 
Hatch  Act,  for  I  was  there  when  it  passed, 
and  I  voted  against  section  nine,  -which  is 
the  one  to  which  this  refers. 

[i3']  Q'  Mr*  President,  in  your  discus- 
sion yesterday  with  Mayor  Lawrence  of  Pitts- 
burgh, did  the  mayor  give  you  a  very  prom- 
ising picture  of  Pennsylvania.? 

THE  PRESIDENT.  Ycs,  he  did.    Yes,  he  did. 

Q.  Do  you  think  Senator  Francis  J.  Myers 
will  be  elected.? 

THE  PRESIDENT.  Yes,  and  I  hope  he  will. 

[14.]  Q.  Mr.  President,  do  you  have  any 
hopes  that  the  miners  will  go  back  to  work 
under  the  injunction 

THE  PRESIDENT.  Well,  I  dou't  waut  to  com- 
ment on  that,  because  that  is  a  matter  that 
is  in  the  courts,  and  the  courts  will  have  to 
handle  it. 

[15.]  Q.  Mr.  President,  did  Mr.  Luckey 
draw  the  correct  conclusion.? 

THE  PRESIDENT.  That  qucstiou  will  have 
to  be — ^you  will  have  to  wait  awhile  for  the 
correct  answer  to  that  question. 

Q.  Didn't  hear  that  answer,  sir. 

THE  PRESIDENT.  He  Wanted  to  know  if 
Mr.  Luckey  drew  the  correct  conclusion,  and 
I  told  him  you  would  have  to  wait  awhile 
to  see  whether  his  conclusion  was  right  or 
not. 

[16.]  Q.  Mr.  President,  your  Solicitor 
General,  Mr.  Perlman,  filed  a  brief  last 
Thursday  regarding  two  schools  in  Okla- 
homa and  Texas;  and  at  the  time  I  asked  you 
if  you  had  seen  it  and  you  said  you  had  not. 
Is  that  brief  the  official  view  of  the  adminis- 
tration? 


162 


Harry  S.  Truman,  ig$o 


Feb.  i6    [38] 


THE  PRESIDENT.  I  havcii't  read  the  brief, 
and  I  don't  know  what  is  in  it,  and  I  can't 
answer  your  question  now  any  more  than  I 
could  last  week. 

[17.]  Q.  Mr.  President,  Mr.  Green  and 
Mr.  Murray  ^  were  in  to  see  you  a  few  days 
ago,  and  they  asked  you  to  do  something 
about  British  arms  shipments  to  the  Arabs. 

THE  PRESIDENT.  They  brought  me  in  a 
letter  signed  by  both  of  them,  and  I  referred 
it  to  the  State  Department. 

Q.  Would  you  care  to  comment  on  it? 

THE  PRESIDENT.  No. 

[18.]  Q.  Mr.  President,  could  you  com- 
ment on  Senator  Joseph  R.  McCarthy's  state- 
ment that  there  are  57  Communists  in  the 
State  Department? 

THE  PRESIDENT.  I  think  the  State  Depart- 
ment answered  that  by  saying  there  was  not 
a  word  of  truth  in  what  the  Senator  said. 

[19.]  Q.  Mr.  President,  what  is  your  feel- 
ing toward  the  Adantic  Union  proposal  now 
being  discussed  on  the  Hill? 

THE  PRESIDENT.  I  am  not  familiar  enough 
with  it  to  comment  on  it.  I  don't  think  now 
is  the  proper  time  to  press  a  thing  of  that 
sort.  We  have  other  things  much  more  im- 
portant right  now. 

[20.]  Q.  Mr.  President,  do  you  feel  there 
would  be  any  value  in — propaganda-wise  or 
otherwise — a  somewhat  more  dramatic  move 
than  the  State  Department's,  by  the  Assistant 
Secretary  of  State,  that  we  are  still  ready  to 
negotiate  on  the  atomic  control? 

THE  PRESIDENT.  What  do  you  mean  by 
that?     The  negotiating  machinery  in   the 


*  William  Green,  president  of  the  American  Fed- 
eration of  Labor,  and  Philip  Murray,  president  of  the 
Congress  of  Industrial  Organizations. 


United  Nations  and  our  Ambassadors  in  all 
the  capitals  of  the  world  are  always  ready 
to  discuss  any  questions  with  any  state  when 
they  want  to  discuss  them  with  us.  The 
door  has  always  been  open.  We  have  never 
walked  out  of  any  meetings.  We  have  never 
used  the  veto  power  for  the  purpose  of  pre- 
venting peace  in  the  world.  Why  don't  you 
read  a  litde  history?  Our  doors  are  always 
open.  Wc  are  ready  to  talk  with  anybody 
on  any  subject  that  will  contribute  to  peace. 
I  don't  think  it  needs  any  showmanship  to 
carry  that  through. 

Q.  Mr.  President,  the  reason — feeling  that 
that  had  been  your  constant  position  was  one 
of  the  reasons  we  were  astonished  at  the 
reference  to  Vinson  in  the  Krock  interview. 

THE  PRESIDENT.  I  don't  think  you  should 
be  astonished.  Read  it  very  carefully.  It 
did  not  astonish  anybody  at  the  time. 

[21.]  Q.  Mr.  President,  the  CIO  execu- 
tive board  early  this  week  urged  you  to  fire 
Mr.  Denham.^°    Are  you  considering  that? 

THE  PRESIDENT.  No,  I  am  not. 

Q.  Mr.  President,  have  you  power  to  fire 
Mr.  Denham? 

THE  PRESIDENT.  If  I  have  the  power  to  ap- 
point, I  have  the  power  to  dismiss,  except 
if  the  law  provides  that  it  can't  be  done. 
You  will  find  that  is  the  decision  of  the  courts 
all  the  way  down. 

Reporter:  Thank  you,  Mr.  President. 

THE  PRESIDENT.  You're  welcomc. 

note:  President  Truman's  two  hundred  and  seven- 
teenth news  conference  was  held  in  his  office  at  the 
White  House  at  10:30  a.m.  on  Thursday,  Febru- 
ary 16,  1950. 

^®  Robert  N.  Denham,  General  Counsel,  National 
Labor  Relations  Board. 


163 


[39]    Feb.  i6 


Public  Papers  of  the  Presidents 


39    Address  at  the  Jefferson-Jackson  Day  Dinner. 
February  i6,  1950 


Mr.  Chairman,  distinguished  guests,  and 
fellow  Democrats: 

This  is  the  most  remarkable  dinner  I  have 
ever  seen.  And  during  my  30  years  in  poli- 
tics, I  have  seen  many  a  dinner.  I  have 
attended  many  Democratic  meetings  such 
as  this,  and  I  think  this  has  been  the  grandest 
one  of  all. 

This  dinner  and  others  like  it  throughout 
the  land  are  evidence  of  the  growing 
strength  of  the  Democratic  Party.  They 
show  that  our  party  is  determined,  more 
than  ever  before,  to  carry  its  message  to  the 
voters  of  this  country. 

It  is  very  significant  that  such  great  inter- 
est and  enthusiasm  are  being  shown  in  a 
congressional  election  year.  We  know  that 
congressional  elections  are  as  important  as 
presidential  elections.  We  found  that  out 
in  1946.  We  found  out  just  how  much 
harm  can  be  done  to  our  country  when  a 
congressional  election  goes  wrong.  I  am 
sure  we  are  not  going  to  let  that  happen 
again.  We  are  not  going  to  put  ourselves 
in  the  position  of  electing  another  "do-noth- 
ing" 80th  Congress. 

These  dinners  carry  forward  a  great  tra- 
dition. The  original  Jefferson-Jackson  din- 
ner was  held  in  this  city  in  1830,  120  years 
ago.  It  was  given  in  memory  of  Thomas 
Jefferson,  and  its  guest  of  honor  was  Andrew 
Jackson,  President  of  the  United  States.  At 
that  first  Jefferson-Jackson  dinner.  President 
Jackson  gave  his  famous  toast — "Our  Fed- 
eral Union,  it  must  be  preserved!" 

Tonight,  we  meet  again  to  think  of  our 
Federal  Union,  and  to  be  thankful  that  it  has 
been  preserved,  and  find  that  it  has  grown 
in  strength  and  in  service  to  the  people.  As 
in  Jackson's  time,  we  meet  to  discuss  some 
of  the  problems  that  our  country  faces. 


We  have  some  very  serious  problems  to- 
day. We  are  living  in  a  troubled  period  of 
the  world's  history.  Our  responsibilities,  as 
a  Nation,  have  never  been  so  great,  and  the 
decisions  we  face  have  never  been  more  diflS- 
cult.  We  are  confronted  with  serious  ques- 
tions of  foreign  policy.  We  have  the  prob- 
lem of  maintaining  an  adequate  national 
defense.  We  have  the  task  of  maintaining 
prosperity  and  protecting  our  economy  from 
depression.  We  have  the  question  of  han- 
dling the  Nation's  finances  and  the  national 
debt. 

My  fellow  Democrats,  these  are  grave  is- 
sues. And  the  Democratic  Party  is  meeting 
them  squarely.  We  do  not  believe  in  tri- 
fling with  the  people  about  these  issues.  We 
do  not  offer  to  solve  them  with  vague  gen- 
eralities and  wornout  slogans.  We  know 
that  the  solution  of  these  problems  requires 
all  the  wisdom  and  energy  we  possess  as  a 
Nation.  We  know  that  their  solution  re- 
quires heavy  expenditures.  The  Democratic 
Party  does  not  propose  to  deceive  the  people 
either  about  the  problems  we  face  or  about 
the  cost  of  solving  them. 

The  Democratic  Party  has  confidence  that 
the  United  States  will  meet  these  great  re- 
sponsibilities. It  knows  that  the  United 
States  is  a  dynamic,  growing  nation.  We 
believe  that  this  country  will  make  as  much 
progress  in  the  next  50  years  as  it  has  made 
in  the  last  50  years. 

But  we  cannot  meet  the  responsibilities  of 
today  or  the  challenge  of  the  future  by  fol- 
lowing the  outmoded  concepts  of  50  years 
ago.  The  promise  of  the  20th  century  can- 
not be  fulfilled  by  those  who  would  like  to 
return  to  the  days  of  President  McKinley. 

We  must  go  forward  with  our  programs 
for  peace  through  defense  and  foreign  aid. 


164 


Harry  S.  Truman,  ig^o 


Feb.  i6    [39] 


We  must  proceed  with  our  domestic  pro- 
grams for  health,  education,  social  security, 
and  economic  stability.  Both  our  foreign 
programs  and  our  domestic  programs  are 
necessary  to  answer  the  demands  which  this 
critical  period  of  history  makes  upon  this 
great  United  States.  We  cannot  have  pros- 
perity at  home  unless  we  play  our  full  part 
in  the  defense  and  the  revival  of  other  free 
nations.  We  cannot  have  peace  abroad  un- 
less we  increase  the  strength  and  freedom, 
and  the  well-being  of  our  people  here  at 
home. 

There  are  some  who  would  like  to  see  us 
turn  our  backs  upon  the  rest  of  the  world 
and  drop  our  efforts  to  strengthen  our  do- 
mestic economy.  At  the  present  time,  they 
are  spreading  the  mistaken  idea  that  we  can 
save  money  by  going  backward.  They  ad- 
vocate slashing  our  expenditures  for  peace 
and  for  our  domestic  programs.  These  peo- 
ple are  blind  to  the  problems  that  confront 
us.  They  cannot  see  that  a  tax  cut  would 
only  help  their  own  pocketbooks  temporar- 
ily. They  fail  to  see  that  in  the  long  run 
false  economy  would  endanger  not  only  their 
pocketbooks  but  their  lives  and  the  continua- 
tion of  civilization  itself. 

It  is  true  that  our  present  expenditures  are 
large.  But  the  Democratic  administration 
is  working  toward  a  balance  in  the  Federal 
budget.  I  wish  we  could  balance  the  budget 
immediately  by  the  simple  expedient  of 
cutting  expenses.  My  friends,  that  is  out  of 
the  question.  More  than  70  percent  of  our 
Federal  budget  goes  to  pay  for  past  wars  and 
to  work  for  peace  in  the  future.  Anyone 
who  says  that  these  expenditures  are  extrava- 
gant does  not  understand  the  kind  of  world 
we  live  in.  Our  other  expenditures  are  less 
than  one-third  of  the  budget,  and  less  in 
proportion  to  the  national  income  than  they 
were  10  years  ago. 

I  would  like  to  cut  expenditures  further, 
and  I  intend  to  cut  them  at  every  oppor- 


tunity. But  I  do  not  propose  to  weaken  the 
strength  and  security  of  this  great  country. 
I  do  not  propose  to  place  the  peace  of  the 
world  in  jeopardy  to  satisfy  the  advocates  of 
false  economy. 

In  this  diflScult  world  situation,  some 
people  are  talking  about  general  tax  reduc- 
tions. I  regard  this  as  rank  political  hypoc- 
risy. We  had  one  recent  experience  with  an 
ill-timed,  irresponsible  tax  cut.  Much  of  our 
present  financial  diflSculty  is  the  result  of  the 
sweeping  tax  reduction  which  was  enacted 
in  1948  over  my  veto — ^at  a  time  when  ex- 
penditures for  defense  and  foreign  policy 
were  inevitably  rising.  I  vetoed  that  tax 
bill  three  times,  and  I  tried  my  best  to  explain 
to  that  **do-nothing"  8oth  Congress  that  they 
were  ruining  the  financial  state  of  the  coun- 
try. They  thought  they  had  a  tremendous 
asset  in  that  asinine  tax  cut,  but  it  backfired 
on  them.  Now,  we  must  not  make  the  same 
mistake  again. 

In  this  election  year,  the  Democratic  Party 
will  not  play  politics  with  the  Federal  budget. 
We  will  state  the  honest  truth  about  the 
budget,  just  as  we  will  about  all  other  issues. 
We  believe  that  the  people  are  entided  to  the 
plain  facts  about  every  issue,  so  that  they  can 
make  up  their  own  minds — ^just  as  they  did 
in  1948. 

The  Democratic  Party  can  afford  to  be 
frank  and  truthful,  because  it  is  working  for 
the  general  welfare  of  all  our  citizens.  It 
does  not  serve  any  narrow  group  or  clique. 
This  makes  it  easy  for  the  Democratic  Party 
to  put  its  program  before  the  country  openly 
and  completely.  We  have  nothing  to  hide 
from  the  people.  Our  strength  lies  in  ex- 
plaining our  program  and  our  policies  to  the 
people.  And  the  more  thoroughly  we  ex- 
plain to  them  what  the  Democratic  Party  is 
trying  to  do,  the  more  certain  we  can  be  of 
their  continued  support. 

There  are  many  differences  between  the 
Democratic  Party  and  the  Republican  Party.. 


165 


[39]    Feb.  16 


Public  Papers  of  the  Presidents 


But  I  think  the  greatest  difference  is  that  the 
Democratic  Party  is  the  party  of  affirmative 
action — it  is  for  measures  to  achieve  pros- 
perity and  progress.  The  Republican  Party 
is  the  party  of  negative  inaction — ^it  is  always 
against  things. 

You  know,  I  think  the  principal  thing  the 
Republicans  are  against,  of  course,  is  the 
Democratic  Party.  They  just  can't  win  on 
that  plank  alone.  They  must  try  to  find 
reasons  for  being  against  the  Democratic 
Party.  They  must  persuade  the  people  to 
vote  against  the  Democratic  Party.  And 
that  is  getting  harder  and  harder  to  do  year 
by  year. 

One  of  the  reasons  it's  hard  to  do  is  that 
the  Republican  Party  has  no  affirmative  pro- 
gram of  its  own.  It  refuses  to  face  the  prob- 
lems of  our  economy.  It  refuses  to  take 
thought  and  to  make  plans  for  the  future. 
Instead  of  presenting  a  positive  program  of 
their  own,  the  Republicans  sit  around  wait- 
ing for  us  to  make  a  proposal,  and  they  react 
with  an  outburst  of  scare  words.  They  are 
like  the  cuttlefish  that  squirts  out  a  black 
cloud  of  ink  whenever  its  slumber  is  dis- 
turbed. We  have  disturbed  the  Republican 
sleepers  many  times  in  the  last  18  years. 

Right  now,  the  main  problem  of  the  Re- 
publican leaders  seems  to  be  to  find  some 
new  scare  words.  They  have  not  had  much 
luck  along  that  line,  lately.  They  tried 
using  the  phrase  "welfare  state"  as  a  scare 
word  for  a  while,  but  they  discovered  that 
the  people  are  in  favor  of  a  government  that 
promotes  their  welfare.  So  they  dropped 
that  one  as  a  scare  slogan.  Then  they  tried 
"statism."  But  my  good  friend  Governor 
Lehman  took  care  of  that  one  in  the  New 
York  election — and  so  they  had  to  drop  it, 
too. 

Now,  the  Republican  leaders  have  to  go 
back  to  an  old  standby.  Frankly,  I  don't 
think  it's  as  good  as  some  of  the  others,  but 
it  appears  to  be  the  best  they  can  think  of. 


Their  current  scare  word  is  "socialism." 

It's  perfectly  safe  to  be  against  "socialism." 
The  difficult  thing  is  to  make  the  country 
beUeve  that  the  Democratic  Party  stands  for 
socialism.  How  in  the  world  can  the  Re- 
publicans persuade  people  that  all  you  Demo- 
crats at  all  these  dinners  are  socialists?  I 
just  don't  believe  they  can  do  it. 

I  know  it  can't  be  done.  But  the  Repub- 
licans will  try  it  just  the  same.  That's  what 
they've  been  trying  to  do  ever  since  1933. 
For  the  last  17  years  they  have  called  every 
new  Democratic  measure  "socialism"  or 
"communism,"  and  they  have  made  constant 
predictions  of  doom  and  disaster.  The  plans 
and  proposals  that  we  have  advanced  for  im- 
proving the  conditions  of  the  people  of  this 
country  have  been  greeted  by  these  same  old 
scare  tactics  during  all  these  years. 

And  I'm  going  to  prove  that  to  you. 

Let  us  take  it  step  by  step.  This  is  most 
interesting. 

In  1933,  this  country  faced  some  of  the 
greatest  problems  in  its  history — ^the  prob- 
lems of  providing  food  and  work  for  millions 
of  jobless  persons  and  their  families,  of  sav- 
ing millions  of  farms  and  homes  from  fore- 
closure, of  restoring  a  banking  system  that 
had  collapsed,  of  placing  the  entire  economy 
on  the  way  to  recovery. 

The  Democratic  Party  rolled  up  its  sleeves 
and  went  to  work.  It  took  steps  to  provide 
relief  and  jobs,  to  save  farms  and  homes,  to 
restore  banks  and  businesses.  Bit  by  bit  the 
economy  responded  to  these  vigorous  meas- 
ures. Income  began  to  grow,  confidence  re- 
turned, business  activity  mounted.  This  was 
the  response  of  the  economy  to  our  farm  and 
labor  and  business  programs — our  programs 
for  resource  development  and  public  works 
and  the  building  of  homes. 

As  this  miracle  of  recovery  unfolded,  what 
was  the  attitude  of  the  Republican  Party? 

In  1934 — ^and  I  ran  for  the  Senate  in  1934, 
and  I  remember  this  well — the  Republican 


166 


Harry  S.  Truman,  igp 


Feb.  i6    [39] 


National  Committee  issued  a  policy  state- 
ment— a  policy  statement.  And  in  that 
statement  they  said: 

"American  institutions  and  American 
civilization  are  in  greater  danger  today  than 
at  any  time  since  the  foundation  of  the 
republic." 

That  sort  of  talk  may  have  frightened  the 
members  of  the  Union  League  Club.  But  it 
didn't  frighten  the  people  who  had  been 
saved  by  the  New  Deal  from  breadlines  and 
bankruptcy. 

In  1936,  the  Republicans  thought  the  dan- 
ger was  worse.  That  was  when  President 
Roosevelt  was  running  for  his  second  term. 
In  that  year,  the  Republican  platform  cried 
out: 

"America  is  in  peril.  The  welfare  of 
American  men  and  women  and  the  future 
of  our  youth  are  at  stake.  .  .  .  The  New 
Deal  administration" — ^this  is  from  the  1936 
Republican  platform — "The  New  Deal  ad- 
ministration has  bred  fear  and  hesitation  in 
commerce  and  industry,  thus  discouraging 
new  enterprises,  preventing  employment, 
and  prolonging  the  depression." 

People  weren't  scared  by  that  one  either. 
They  knew  it  just  didn't  make  sense,  because 
the  national  income  had  risen  more  than  50 
percent  in  the  previous  4  years,  and  it  was 
still  rising. 

In  1940,  the  Republicans  tried  to  scare  us 
again.    This  time  their  platform  said: 

"The  Administration  has  imposed  upon 
us  a  regime  of  regimentation  which  has  de- 
prived the  individual  of  his  freedom  and  has 
made  of  America  a  shackled  giant.  .  .  .  The 
New  Deal  administration  has  failed 
America." 

That's  what  the  Republicans  said,  but  the 
America  that  the  New  Deal  had  saved — the 
economy  that  the  New  Deal  had  freed  and 
made  productive  again — became  the  arsenal 
of  democracy  that  overwhelmed  the  forces 
of  totalitarian  aggression. 


But  that  still  didn't  teach  the  Republicans 
anything.  In  1944,  when  we  stood  at  the 
peak  of  our  wartime  production — ^the  eco- 
nomic bulwark  of  the  free  world — the  Re- 
publican Party  platform  proclaimed:  "The 
fact  remains  that  under  the  New  Deal,  Amer- 
ican economic  life  is  being  destroyed." 
That's  what  they  said  in  1944 — "American 
economic  life  is  being  destroyed." 

Apparently,  they  never  learn  anything. 
Today,  when  we  have  a  national  output  of 
over  $250  billion  a  year  and  a  higher  stand- 
ard of  living  than  ever  before  in  the  history 
of  the  world,  the  Republican  Party  still  can- 
not see  anything  good  about  the  situation. 
In  their  policy  statement  issued  10  days  ago, 
the  Republican  National  Committee  de- 
clared: "The  major  domestic  issue  today  is 
liberty  against  socialism:  .  .  .  Basic  Amer- 
ican principles" — they  said — "are  threatened 
by  the  administration's  program  .  .  ." 

It's  the  same  old  story — the  same  old 
words,  the  same  old  music — ^the  same  empty 
and  futile  attempt  to  scare  the  American 
people — ^in  complete  contradiction  of  the 
plain  facts  that  are  visible  to  every  citizen  in 
his  daily  life  to  see.  The  country  is  not 
going  to  let  them  get  away  with  it.  Don't 
worry  about  it. 

For  the  past  17  years,  the  same  outcry  has 
greeted  every  proposal  advanced  by  the 
Democratic  Party — whether  it  has  been  for 
better  housing,  social  security,  rural  electrifi- 
cation, farm  price  supports,  minimum  wages, 
or  any  other  program  for  the  general  welfare 
of  the  people. 

They  have  been  against  all  these  proposals, 
but  now  they  are  for  all  of  them.  But,  are 
they?  Are  they?  I  think  they  showed  you 
conclusively  what  they  would  do  if  they  had 
control  of  the  Government  when  they  had 
the  8oth  Congress. 

In  1944,  Representative  Joseph  W.  Martin, 
Jr. — ^who  was  the  Republican  leader  in  the 
House,  and  who  is  the  minority  leader 


167 


[39]    Feb.  i6 


Public  Papers  of  the  Presidents 


now — summarized  the  Republican  attitude 
toward  all  these  progressive  steps  in  one  brief 
paragraph  when  he  said: 

"For  1 1  years  wc  have  been  steadily  drift- 
ing into  a  regimented  nation,  with  absolute 
control  vested  in  a  power-mad  group  of 
bureaucrats  and  social  planners.  Unless 
there  is  a  change  in  government  this  year 
we  can  be  reconciled  to  some  kind  of  totali- 
tarian government."    That  was  in  1944. 

That  is  what  the  Republicans  said  about 
our  program  in  1944.  That  is  the  way  they 
talked  about  our  programs  in  1948.  That 
is  what  they  are  saying  about  them  now. 

Today  we  are  proposing  further  develop- 
ment of  our  resources,  further  strengthening 
of  our  economy,  new  measures  for  the  wel- 
fare of  the  people.  And  what  do  we  hear? 
The  same  old  story.  It  is  all  repeated  in  that 
latest  statement  of  the  Republican  National 
Committee: 

"This  program" — ^they  said,  and  they  were 
talking  about  the  program  of  the  Democratic 
Party — ^not  their  own,  for  they  haven't  one — 
"This  program  is  dictated  by  a  small  but 
powerful  group  of  persons  who  believe  in 
socialism,  who  have  no  concept  of  the  true 
foundation  of  American  progress,  whose 
proposals  are  wholly  out  of  accord  with  the 
true  interests  and  the  real  wishes  of  the 
workers,  farmers,  and  businessmen."  That 
is  a  quotation  from  their  very  solemn  policy 
statement. 

Well,  let's  look  at  the  record.  What  is  our 
program?  Where  did  it  come  from?  Our 
program  is  the  platform  adopted  by  the 
Democratic  Party  at  its  Convention  in  1948. 
And  it  has  been  voted  on  by  the  people  of 
this  country,  including  the  workers,  farmers, 
and  businessmen. 

If  our  program  was  dictated,  as  the  Re- 
publicans say,  it  was  dictated  at  the  polls  in 
November  1948.  And  it  was  dictated  by  a 
"small  but  powerful  group"  of  24  million 
voters. 


And  I  think  they  knew  more  than  the 
Republican  National  Committee  about  the 
real  wishes  of  the  workers,  farmers,  and 
businessmen.    What  do  you  think? 

Now,  of  course,  this  program  is  not  social- 
ism. It  is  based  upon  a  firm  faith  in  the 
strength  of  free  enterprise.  It  is  designed  to 
strengthen  the  markets  of  free  enterprise  and 
to  expand  the  investments  of  free  enterprise. 
It  will  make  our  citizens  economically  secure, 
well  educated,  and  confident  of  the  future. 
Only  in  a  nation  of  such  citizens  can  free 
enterprise  grow  and  expand  and  reach  its 
full  possibilities. 

The  program  of  the  Democratic  Party  is 
aimed  to  promote  the  prosperity  and  welfare 
of  all  the  American  people.  It  is  aimed  to 
increase  the  freedom  of  all  the  American 
people. 

Freedom  is  not  an  abstraction.  Freedom 
is  a  reality  in  our  daily  lives.  The  programs 
of  our  party  have  freed  workers  from  the 
economic  subjection  of  their  employers. 
These  programs  have  freed  farmers  from  the 
fear  of  bankruptcy.  These  programs  have 
released  farm  wives  from  bondage  and  cease- 
less drudgery.  These  programs  have  freed 
older  people  from  the  fear  of  a  dependent 
old  age. 

These  programs — our  programs — look 
forward  to  the  day  when  our  people  will  be 
freed  from  fear  of  inadequate  medical  care 
from  crushing  medical  expenses.  They  are 
aimed  at  freeing  our  young  people  from 
ignorance  and  a  poor  education. 

This  is  the  record  and  the  promise  of  the 
Democratic  Party  in  expanding  the  freedom 
of  the  American  people.  But  when  the 
Republican  Party  proclaims  that  we  are  en- 
gaged in  restricting  freedom — ^that  we  are 
enemies  of  freedom — I  ask,  "Whose  free- 
dom?" Let  the  American  people  look  into 
their  own  lives  and  ask  themselves  whether 
they  enjoy  greater  freedom  or  less  than  they 
did  18  years  ago. 


168 


Harry  S.  Truman,  igp 


Feb.  17    [40] 


About  the  only  freedom  we  have  limited 
is  the  freedom  of  Republicans  to  run  the 
country.  I  have  an  idea  that  is  what  they 
are  complaining  about. 

For  the  Republicans  to  drag  out  the  same 
old  moth-eaten  scarecrow  of  "socialism" 
again  in  1950 — ^after  having  used  it,  or  some- 
thing very  like  it,  in  opposition  to  every 
progressive  step  the  Nation  has  taken  since 
1933 — is  an  insult  to  the  intelligence  of  the 
American  people.  Out  of  the  great  progress 
of  this  country,  out  of  our  great  advances  in 
achieving  a  better  life  for  all,  out  of  our  rise 
to  world  leadership,  the  Republican  leaders 
have  learned  nothing.  Confronted  by  the 
great  record  of  this  country,  and  the  tremen- 
dous promise  of  its  future,  all  they  can  croak 
is  "socialism!" 

The  Democratic  Party  is  going  right  ahead 
to  meet  the  needs  and  carry  out  the  aspira- 
tions of  the  American  people. 

Our  objective  is  to  advance  in  freedom — 
to  create  a  system  of  society  that  is  even  more 
responsive  to  the  needs  of  the  people — ^to 
establish  democratic  principles  so  firmly  in 
the  hearts  of  the  people  that  they  can  never 
be  uprooted. 

In  the  present  anxieties  and  troubles  of 
the  world,  the  real  strength  of  our  country 
lies  not  in  arms  and  weapons,  important  as 
they  may  be,  but  in  the  freedom  of  our  citi- 


zens in  their  faith  in  a  democratic  society. 
Among  the  nations  of  the  world  we  stand 
as  an  example  of  what  free  men  can  do  when 
they  are  in  control  of  their  own  affairs  and 
dedicated  to  the  concept  of  a  better  life  for 
all. 

To  work  for.  the  prosperity,  and  welfare, 
and  freedom  of  the  American  people  is  to 
work  for  the  vindication  of  democratic  in- 
stitutions everywhere.  And  it  is  only 
through  the  growth  of  democratic  institu- 
tions that  a  just  and  lasting  peace  can  finally 
be  achieved. 

In  this  troubled  world,  it  is  more  than  ever 
important  that  the  Democratic  Party  remain 
steadfast  in  its  devotion  to  these  ideals.  It 
is  more  than  ever  important  this  year 
that  the  Democratic  Party  present  its  pro- 
gram to  the  people  so  plainly  that  it  cannot 
be  misunderstood.  If  we  do  that,  I  am 
confident  that  the  people  will  again  voice 
their  approval  of  the  principles  which  lead  to 
increased  prosperity,  welfare,  and  freedom — 
not  only  for  this  country,  but  for  all  free 
nations  of  the  world  everywhere. 

note:  President  Truman  spoke  at  10:30  p.m.  in 
the  National  Guard  Arxnory  in  Washington.  His 
opening  words  "Mr.  Chairman"  referred  to  Charles 
Luckman,  chairman  of  the  Jefferson-Jackson  Day 
Committee. 

The  address  was  broadcast  over  all  major  radio 
networks  and  was  televised. 


40    Letter  to  Dr.  Irvin  L.  Stewart  on  the  Establishment  of  the 

President's  Communications  PoUcy  Board.    February  17, 1950 


My  dear  Dr,  Stewart: 

Communications  services  represent  a  vital 
resource  in  our  modern  society.  They  make 
possible  the  smooth  functioning  of  our  com- 
plex economy;  they  can  assist  in  promoting 
international  understanding  and  good  will; 
they  constitute  an  important  requirement  for 
our  national  security.    There  is,  accordingly, 


a  major  public  interest  in  assuring  the  ade- 
quacy and  efficiency  of  these  services. 

Developments  in  this  field  during  and 
since  the  w^ar  have  created  a  number  of  prob- 
lems which  require  careful  consideration  at 
this  time.  The  extent  to  which  the  Gov- 
ernment should,  in  time  of  peace,  continue 
to  operate  its  own  communications  facilities 


169 


[40]    Feb.  17 


Public  Papers  of  the  Presidents 


is  one  such  problem  of  current  importance. 
The  question  of  merging  the  overseas  opera- 
tions of  our  commercial  communications 
companies  also  requires  objective  review. 
The  most  pressing  communications  problem 
at  this  particular  time,  however,  is  the  scar- 
city of  radio  frequencies  in  relation  to  the 
steadily  growing  demand.  Increasing  diffi- 
culty is  being  experienced  in  meeting  the 
demand  for  frequencies  domestically,  and 
even  greater  difficulty  is  encountered  interna- 
tionally in  attempting  to  agree  upon  the 
allocation  of  available  frequencies  among  the 
Nations  of  the  world.  In  the  face  of  this 
growing  shortage,  the  problem  of  assuring 
an  equitable  distribution  of  the  available 
supply  of  frequencies  among  all  claimants, 
both  Governmental  and  private,  is  rapidly 
assuming  major  prominence. 

Problems  such  as  these  cannot  adequately 
be  considered  on  a  piecemeal  basis.  They 
must  be  viewed  as  parts  of  the  broader  prob- 
lem of  developing  a  total  national  communi- 
cations policy,  designed  to  assure  the  most 
effective  utilization  of  the  various  forms  of 
communication  facilities,  and  the  full  satis- 
faction of  those  needs  which  are  most  essen- 
tial to  the  broad  public  interest.  An  over-all, 
objective  review  of  this  entire  situation  is 
urgendy  needed. 

I  am  therefore  establishing  by  Executive 
order  a  temporary  Communications  Policy 
Board  of  5  members  to  study  and  to  make 
recommendations  to  me  on  the  policies  and 
practices  which  should  be  followed  by  the 
Federal  Government  in  this  field  in  order 
best  to  meet  the  broad  requirements  of  the 
public  interest.  I  am  asking  you  to  serve  as 
Chairman  of  this  Board.  In  view  of  the 
need  for  early  action  in  this  field,  I  should 
like  to  receive  the  Board's  final  report  by  no 
later  than  October  31,  1950. 

The  Executive  order  establishing  this 
Board  states  that  the  Board  shall  study  the 


present  and  potential  use  of  radio  and  wire 
communications  facilities  by  governmental 
and  non-governmental  agencies.  The  Order 
further  states  that  the  Board  shall  make  rec- 
ommendations in  the  national  interest  con- 
cerning (a)  policies  for  the  most  effective 
use  of  radio  frequencies  by  governmental  and 
non-governmental  users  and  alternative  ad- 
ministrative arrangements  in  the  Federal 
Government  for  the  sound  effectuation  of 
such  policies,  (b)  policies  vdth  respect  to  in- 
ternational radio  and  wire  communications, 
(c)  the  relationship  of  Government  com- 
munications to  non-government  communica- 
tions, and  (d)  such  related  policy  matters  as 
the  Board  may  determine. 

I  feel  that  the  problem  of  radio  frequencies 
will  be  one  of  the  most  important  areas  for 
the  Board's  investigations.  I  hope  that,  as 
a  result  of  its  studies,  the  Board  will  be  able 
to  recommend  possible  means  for  conserving 
frequencies,  as  well  as  standards  for  deter- 
mining the  relative  priority  of  competing 
claims  for  frequencies,  and  possible  adminis- 
trative arrangements  within  the  Government 
for  assuring,  on  a  continuing  basis,  a  sound 
and  equitable  allocation  of  the  limited  fre- 
quency supply. 

I  believe  that  the  studies  to  be  undertaken 
by  the  Board  are  of  vital  importance  to  the 
economy  of  this  Nation,  to  our  international 
relations,  and  to  our  national  security.  I  am 
sure  that  you  will  receive  the  full  coopera- 
tion and  assistance  of  all  parties  concerned. 
Sincerely  yours, 

Harry  S.  Truman 

[Dr.  Irvin  L.  Stewart,  President,  University  of  West 
Virginia,  Morgantown,  West  Virginia.] 

note:  The  President's  Communications  Policy  Board 
was  established  by  Executive  Order  loiio  (3  CFR, 
1949-1953  Comp.,  p.  302). 

The  following  persons  were  appointed  by  the 
President  to  the  Board,  in  addition  to  Dr.  Stewart: 
Dr.  Lee  A.  DuBridge,  president,  California  Institute 
of  Technology,  Pasadena,  Calif.;  David  H.  O'Brien, 


170 


Harry  S.  Truman,  igp 


Feb. 


22 


[42] 


Hackettstown,  N.J.;  William  L.  Everitt,  dean,  Col- 
lege of  Engineering,  University  of  Illinois,  Urbana, 
111.;  and  Dr.  Janies  R.  Killian,  Jr.,  president,  Massa- 
chusetts Institute  of  Technology,  Cambridge,  Mass. 


On  February  16,  1951,  the  Board  submitted  to  the 
President  its  report,  "Telecommunications,  A  Pro- 
gram for  Progress"  (238  pp.,  Government  Printing 
Office,  Mar.  1951). 


41    Remarks  at  a  Masonic  Breakfast  on  Washington's  Birthday. 
February  22,  1950 


Mr.  Chairman  and  distinguished  guests: 

I  am  exceedingly  happy  to  be  with  you  this 
morning  for  breakfast,  but  I  don't  think  it 
would  be  entirely  fair  for  me  to  take  ad- 
vantage of  the  opportunity  to  inflict  two 
speeches  on  you,  because  at  2:30  this  after- 
noon I  am  going  to  address  you  formally 
and  straight  from  the  shoulder  on  the  for- 
eign policy  of  the  United  States  as  it  affects 
the  birthday  of  George  Washington. 

I  think  that  gatherings  of  this  kind  are 
exceedingly  helpful  for  the  welfare  of  the 
country  as  a  whole.  We  come  from  every 
corner  of  the  United  States,  we  know  the 
local  conditions,  and  we  have  come  here  to 
discuss  national  affairs  and  to  discuss  our 
own  problems;  and  we  go  back  home  bigger 
and  broader  men,  and  in  that  way  can  con- 
tinue the  traditions  on  which  our  Govern- 
ment is  founded. 

It  is  a  pleasure  to  me  this  morning  to  see 
a  great  many  gendemcn  here  who  are  not 
members  of  the  fraternity.  They  are  just  as 
good  citizens  and  just  as  good  men,  never- 
theless. I  am  very  sure  that  there  are  some 
of  them  here  this  morning  that  I  am  going 
to  have  to  get  absolution  for.    I  am  a  very 


good  friend  of  His  Holiness  the  Pope,  so  you 
needn't  worry. 

I  do  appreciate  this  privilege.  I  hope  that 
it  can  be  continued,  and  that  we  can  get  to- 
gether for  pleasure  and  fraternal  association 
year  after  year,  for  the  welfare  not  only  of 
this  organization  to  which  we  belong,  but 
for  the  welfare  of  the  United  States  and  the 
governments  of  the  world  as  a  whole  who 
believe  in  the  Bill  of  Rights  for  their  citizens. 
That  is  the  thing  that  we  are  fighting  for  in 
this  world. 

If  I  am  not  careful,  I  will  probably  be 
tipping  you  off  as  to  what  I  expect  to  discuss 
this  afternoon,  so  I  think  now  is  a  good  time 
to  quit. 

Thank  you  very  much. 

note:  The  President  spoke  at  8:15  a.m.  in  the 
Congressional  Room  of  the  Statler  Hotel  in  Wash- 
ington. His  opening  words  "Mr.  Chairman"  re- 
ferred to  Frank  Land,  founder  of  the  Order  of 
DeMolay. 

The  breakfast  was  given  in  the  President's  honor 
by  Mr.  Land  on  behalf  of  the  Grand  Masters  of  the 
Masonic  Order  who  were  in  Washington  to  attend 
the  Grand  Master's  Conference.  Also  in  attendance 
at  the  breakfast  were  several  high  officials  of  the 
Federal  Government. 

President  Truman  was  a  thirty-third  degree  Mason 
and  a  Past  Grand  Master  of  the  Grand  Lodge  of  the 
State  of  Missouri. 


42    Address  on  Foreign  Policy  at  the  George  Washington 
National  Masonic  Memorial.    February  22,  1950 


IT  IS  a  great  privilege  to  dedicate  this  in- 
spiring :5tatue  of  George  Washington. 

This  is  the  climax  of  many  years  of  plan- 
ning and  effort.    I  congratulate  particularly 


the  Order  of  DeMolay,  whose  contributions 
have  made  this  statue  a  reality.  This  heroic 
likeness  of  our  first  President  makes  even 
more  impressive  the  entrance  hall  of  this 


171 


[42]    Feb.  22 


Public  Papers  of  the  Presidents 


temple.  It  is  altogether  fitting  that  this  work 
should  stand  in  the  community  that  Wash- 
ington did  so  much  to  build,  and  so  near  his 
own  home  at  Mount  Vernon. 

George  Washington,  like  ourselves,  lived 
in  a  period  of  great  change — a  period  when 
new  forces  and  new  ideas  were  sweeping 
across  the  world.  He  was  the  leader  of  his 
people  in  a  revolution  against  tyranny.  He 
commanded  an  army  in  a  long  and  bitter 
war.  He  was  a  major  figure  in  the  creation 
of  a  new  kind  of  constitution.  And,  finally, 
as  the  first  President  of  our  Nation,  he  trans- 
lated that  Constitution  into  a  living  govern- 
ment. 

Washington's  efforts  for  freedom  were 
twofold.  He  was  concerned  first  with  mak- 
ing the  ideal  of  democratic  government 
work.  He  was  also  concerned  with  the  de- 
fense of  that  ideal  against  the  forces  that 
opposed  it. 

Washington  was  unwavering  in  his  de- 
votion to  the  democratic  concept.  He 
never  yielded  to  those  who  urged  him  to 
assume  extraordinary  powers.  Even  in  the 
darkest  days  of  the  Revolution,  when  his 
task  as  Commander  in  Chief  of  the  American 
forces  was  rendered  doubly  diflScult  by  the 
weakness  of  the  Congress  and  the  rivalries 
among  the  states,  he  always  considered  him- 
self a  servant  of  the  people.  In  all  that  he 
did  he  strove  to  make  democratic  institutions 
more  eiffective. 

He  knew,  too,  that  they  had  to  be  de- 
fended— that  there  were  times  when  the  use 
of  force  to  defend  democracy  could  not  be 
avoided.  He  not  only  led  the  armies  of  the 
revolution,  but  as  President  he  was  always 
alert  to  the  necessity  of  a  vigorous  national 
defense. 

The  task  of  Americans  today  is  fundamen- 
tally the  same  as  it  was  in  Washington's 
time.  We,  too,  must  make  democracy  work 
and  we  must  defend  it  against  its  enemies. 

But  our  task  today  is  far  greater  in  scope 


than  it  was  in  Washington's  time.  Not  only 
are  we  concerned  with  increasing  the  free- 
dom, welfare,  and  opportunity  of  our  people. 
We  are  also  concerned  with  the  right  of  other 
peoples  to  choose  their  form  of  government, 
to  improve  their  standards  of  living,  and  to 
decide  what  kind  of  life  they  want  to  live. 

Since  Washington's  time  the  great  prin- 
ciples for  which  the  American  Revolution 
was  fought  have  become  known  throughout 
the  world  and  have  uplifted  the  hearts  and 
hopes  of  generations  of  men.  At  the  same 
time,  through  the  progress  of  science,  the 
nations  of  the  world  have  been  drawn  to- 
gether into  a  common  destiny.  Our  security 
and  progress  are  today  more  closely  related 
than  ever  before  to  the  advance  of  freedom 
and  self-government  in  other  lands. 

This  is  a  time  of  restlessness  and  change. 
In  many  parts  of  the  world  men  are  search- 
ing for  a  better  social  order.  They  demand  a 
way  of  life  that  will  provide  greater  freedom 
and  more  widespread  opportunity.  They 
yearn  to  own  the  land  they  live  on,  and  to  be 
secure  against  poverty,  disease  and  hunger. 
Above  all,  they  want  to  live  their  own  lives 
as  they  see  fit.  This  rising  demand  of  men 
everywhere  for  independence  and  a  better 
life  puts  the  ideals  of  freedom  and  self- 
government  to  their  greatest  test. 

At  the  same  time,  these  ideals  are  under 
deadly  attack  from  those  who  would  destroy 
them.  The  most  aggressive  of  these  enemies 
today  is  communism.  Communism  seeks  to 
induce  men  to  surrender  their  freedom  by 
false  promises  of  a  better  Ufe.  But  the  great 
danger  of  communism  does  not  lie  in  its  false 
promises.  It  lies  in  the  fact  that  it  is  an 
instrument  of  an  armed  imperialism  which 
seeks  to  extend  its  influence  by  force. 

This  threat  of  force  is  a  challenge  to  all 
peoples  who  are  free  and  who  wish  to  be 
free  and  remain  free.  The  fundamental  is- 
sue is  whether  men  are  to  be  free  to  choose 
their  own  way  of  life,  or  whether  they  must 


172 


Harry  S.  Truman,  igp 


Feb.  22    [42] 


live  under  a  system  imposed  upon  them  by 
force. 

Just  as  our  Thirteen  Original  States  found 
that  survival  and  progress  depended  on  closer 
association  and  common  effort,  so  the  free 
nations  of  the  vv^orld  today  must  seek  their 
salvation  in  unity  and  concerted  action.  The 
real  strength  of  the  free  nations  is  not  to  be 
found  in  any  single  country  or  in  any  one 
v^eapon,  but  in  the  combined  moral  and 
material  strength  of  the  free  world  as  a 
w^hole. 

As  members  of  the  United  Nations,  the 
free  nations  are  working  for  peace  and  inter- 
national security  in  accordance  with  the 
principles  set  forth  in  the  United  Nations 
Charter.  Within  the  context  of  that  larger 
association,  many  of  the  free  nations  have 
joined  together  to  strengthen  the  common 
defense  of  particular  areas  against  aggression. 
That  is  the  meaning  of  the  North  Atlantic 
Treaty  and  the  Mutual  Defense  Assistance 
Program. 

We  shall  continue  to  work  with  the  other 
free  nations  associated  with  us  in  the  com- 
mon defense — for  our  defense  is  theirs,  and 
their  defense  is  ours.  The  united  defense 
of  these  nations  is  a  powerful  deterrent  to 
aggression,  and  it  will  become  more  power- 
ful as  time  passes  on. 

In  creating  a  common  defense,  we  do  not 
seek  to  impose  a  way  of  life  on  any  nation. 
Freedom  is  not  expanded  by  conquest. 
Democracy  is  not  created  by  dictation. 
Freedom  and  democracy  grow  only  by  per- 
suasion and  example  and  through  the  actual 
experience  of  what  they  mean. 

At  the  same  time,  freedom  cannot  grow 
and  expand  unless  it  is  protected  against  the 
armed  imperialism  of  those  who  would  de- 
stroy it.  The  free  nations,  therefore,  must 
maintain  military  force  as  a  defensive 
measure. 

While  the  free  nations  stand  prepared  to 
resist  aggression,  they  are  doing  their  utmost 


to  find  peaceful  means  for  settling  inter- 
national disputes.  They  know  that  another 
great  war  could  destroy  victor  and  van- 
quished alike. 

Consequendy,  we  in  the  United  States  are 
doing,  and  will  continue  to  do,  all  that  lies 
within  our  power  to  prevent  the  horror  of 
another  war.  We  are  working  for  the  re- 
duction of  armaments  and  the  control  of 
weapons  of  mass  destruction. 

We  are  convinced  of  the  necessity  for 
an  international  agreement  to  limit  the  use 
of  atomic  energy  to  peaceful  purposes,  and 
for  a  working  international  system  to  as- 
sure that  such  an  agreement  is  effectively 
carried  out.  We  believe  that  the  United  Na- 
tions is  the  proper  forum  to  reach  such  an 
agreement.  We  firmly  believe  that  all  na- 
tions would  gain  by  such  an  international 
agreement.  We  shall  continue  to  work  hon- 
esdy  and  wholeheartedly  toward  that  end. 
But  we  must  remember  that  the  outcome  is 
not  ours  alone  to  determine.  The  actions  of 
men  in  other  countries  will  help  to  shape 
the  ultimate  decision. 

We  believe  that  the  plan  for  controlling 
atomic  energy  which  has  been  worked  out 
in  the  United  Nations  and  has  been  ap- 
proved by  the  overwhelming  majority  of  its 
members,  would  be  effective.  The  plan, 
therefore,  has  our  support.  It  has  our  sup- 
port not  because  of  its  form  or  its  words,  but 
because  we  believe  that  it  would  achieve 
effective  control.  The  stakes  are  too  large 
to  let  us,  or  any  nation,  stand  on  pride  of 
authorship.  We  ask  only  for  a  plan  that 
provides  an  effective,  workable  system — 
anything  else  would  be  a  sham  agreement. 
Anything  less  would  increase,  not  decrease, 
the  dangers  of  the  use  of  atomic  energy  for 
destructive  purposes.  We  shall  continue  to 
examine  every  avenue,  every  possibility  of 
reaching  real  agreement  for  effective  con- 
trol. 

In  the  long  run,  however,  our  security 


173 


[42]    Feb.  22 


Public  Papers  of  the  Presidents 


and  the  world's  hopes  for  peace  lie  not  in 
measures  of  defense  or  in  the  control  of 
weapons,  but  in  the  growth  and  expansion  of 
freedom  and  self-government.  As  these 
ideals  are  accepted  by  more  and  more 
people,  as  they  give  greater  meaning  and 
richer  content  to  the  lives  of  millions,  they 
become  the  greatest  force  in  the  world  for 
peace. 

The  purpose  of  our  participation  in  the 
United  Nations  and  other  international  or- 
ganizations is  to  strengthen  this  great  force 
for  peace.  That  is  the  purpose  of  the  Euro- 
pean recovery  program  and  our  point  4  pro- 
gram to  assist  underdeveloped  areas.  That 
is  the  purpose  of  our  foreign  trade  pro- 
gram and  our  other  measures  to  help  build 
world  prosperity. 

These  programs  are  positive  measures  to 
increase  the  strength  of  freedom  and  self- 
government  by  helping  men  to  meet  the 
needs  and  fulfill  the  aspirations  of  their  daily 
lives. 

Today,  in  many  countries  of  the  world, 
the  concepts  of  freedom  and  self-govern- 
ment are  merely  vague  phrases.  They  ex- 
press little  to  people  who  are  engaged  in  a 
desperate  struggle  with  ignorance  and  pov- 
erty. They  mean  little  to  men  who  must 
work  from  sunup  to  sundown  merely  to  keep 
alive.  They  are  not  fully  understood  by 
men  who  cannot  read  or  write. 

On  the  continent  of  Asia,  the  islands  of 
the  Far  East,  in  Africa,  in  the  Near  East, 
are  millions  of  people  who  live  in  poverty 
who  have  never  known  real  freedom  or  dem- 
ocratic government.  In  their  present  con- 
dition, the  immediate  benefit  of  steel  plow- 
shares, or  smallpox  vaccinations,  has  more 
appeal  than  abstract  ideas  of  democracy. 

The  Communists  are  saying  that  they 
will  bring  food  and  clothing  and  health  and 
a  more  secure  life  to  these  poverty-stricken 
peoples.  We  know  that  is  not  true.  But  it 
is  not  enough  to  tell  such  people  that  com- 


munism is  a  modern  tyranny  far  Worse  than 
that  of  any  ancient  empire.  It  is  not  enough 
to  tell  them  that  communism  leads  only  to 
oppression.  People  who  have  never  known 
freedom  and  security  themselves  have  litde 
basis  for  judging  how  false  are  the  claims 
of  communism. 

These  people  will  turn  to  democracy  only 
if  it  seems  to  them  to  be  the  best  way  to 
meet  their  urgent  needs.  The  benefits  of 
freedom  and  democracy  must  be  demon- 
strated to  them. 

In  many  of  these  areas  there  are  govern- 
ments which  are  working  to  improve  the 
conditions  of  their  people.  They  know  that 
the  claims  of  the  Communists  are  not  made 
in  good  faith.  They  do  not  want  Soviet 
domination.  If  these  governments  are  suc- 
cessful in  raising  living  standards,  and  in 
building  strong  and  stable  democratic  insti- 
tutions based  on  popular  support,  their  peo- 
ple will  not  go  over  to  communism. 

But  these  governments  are  struggling  with 
titanic  problems,  as  their  people  attempt  to 
climb  in  a  few  years  from  economic  misery 
to  better  standards  of  living.  They  need 
help.  If  these  nations  are  to  grow  in  free- 
dom, they  urgently  need  assistance  in  im- 
proving their  health,  their  education,  and 
their  productive  capacity,  their  transporta- 
tion and  their  communication  systems. 

That  is  why  I  have  requested  the  Con- 
gress to  act  as  rapidly  as  possible  on  legisla- 
tion to  expand  our  programs  for  giving  tech- 
nical assistance  to  such  countries  as  these, 
and  to  encourage  American  investment  in 
those  countries  on  a  mutually  beneficial  basis. 
We  are  not  trying  to  sell  them  automobiles 
and  television  sets.  Our  purpose  is  to  help 
them  grow  more  food,  to  obtain  better  edu- 
cation, to  be  more  healthy.  That  is  the  way 
they  can  gain  the  physical  and  moral  strength 
to  be  free  and  to  maintain  their  own  govern- 
ments. 

As  these  nations  prove  to  themselves  and 


174 


Harry  S.  Truman,  ig^o 


Feb.  22    [42] 


to  others  the  effectiveness  of  free  institutions 
in  meeting  their  people's  needs,  they  will 
show  as  nothing  else  can  the  true  value  of 
democracy  and  the  false  claims  of  commu- 
nism. 

But  the  problem  of  making  free  institu- 
tions work  is  not  confined  to  underdeveloped 
areas.  The  highly  developed  nations  of 
Europe  came  out  of  the  war  with  serious 
problems  of  their  own.  They  were  threat- 
ened with  economic  chaos.  Their  ability  to 
maintain  freedom  and  democracy  was  chal- 
lenged. 

The  purpose  of  the  European  recovery 
program  was  to  meet  this  challenge  in  the 
area  of  the  world  where  the  preservation  of 
free  governments  was  of  supreme  impor- 
tance. The  results  which  have  been 
achieved  so  far  under  that  program  have 
amply  demonstrated  its  wisdom. 

With  the  aid  we  have  provided,  the  na- 
tions of  Europe  have  already  made  great 
advances  in  their  production  and  have  im- 
proved their  trading  relations  with  the  rest 
of  the  world.  Much  more  must  be  done 
before  they  reach  the  firm  basis  of  economic 
self-support  which  is  essential  to  the  main- 
tenance of  free  and  democratic  governments. 
Consequently,  we  must  complete  our  pro- 
gram of  assistance.  It  would  be  utter  folly 
to  lose  sight  of  the  importance  of  the  Euro- 
pean recovery  program.  It  is  essential  to  our 
hopes  for  peace. 

The  preservation  and  strengthening  of 
free  governments  depends  in  large  measure 
on  the  creation  of  firm  economic  conditions 
throughout  the  world  and  on  an  expanding 
world  trade.  Free  nations  can  expand  their 
trade  only  on  the  basis  of  mutual  respect  and 
fair  dealing. 

Our  reciprocal  trade  agreements  program 
and  the  International  Trade  Organization 


are  the  kind  of  international  machinery 
which  is  necessary  for  increasing  the  trade 
of  the  world.  We  shall  continue  to  use  the 
procedures  of  the  reciprocal  trade  agreements 
program  to  reduce  trade  barriers,  but  more 
than  this  is  needed.  That  is  why  I  have 
urged  the  Congress  to  act  favorably  on  the 
creation  of  the  International  Trade  Organi- 
zation, through  which  the  nations  of  the 
world  can  work  together  effectively  to  in- 
crease world  trade. 

This  program  and  our  other  plans  for 
international  action  are  the  practical  way  to 
move  forward  toward  peace.  They  recog- 
nize that  we  must  deal  with  the  difficult 
world  situation  which  actually  exists.  We 
must  not  be  discouraged  by  difficulties  and 
setbacks.  We  must  not  be  misled  by  the 
vain  hope  of  finding  quick  and  easy  solu- 
tions. We  must  move  forward  persistendy 
and  courageously  along  the  hard  path  to 
peace,  based  on  freedom  and  justice. 

The  progress  we  have  made  in  this  coun- 
try since  the  days  of  George  Washington  is 
proof  of  the  vitality  and  truth  of  the  ideals 
he  fought  for.  We  must  be  no  less  firm,  no 
less  resolute,  no  less  steadfast  than  he  was. 
We  move  upon  a  greater  stage  than  he  did, 
but  our  problems  are  fundamentally  the 
same  problems  that  faced  the  first  President 
of  this  Nation — to  make  democracy  work 
and  to  defend  it  from  its  enemies. 

George  Washington  sought  guidance  from 
Almighty  God  as  he  faced  these  tasks  in  his 
time;  let  us  be  guided  today  by  divine  provi- 
dence as  we  strive  for  lasting  peace  with 
freedom  and  justice  for  all  mankind. 

note:  The  President  spoke  at  3  p.m.  at  the  George 
Washington  National  Masonic  Memorial  in  Alexan- 
dria, Va. 

The  statue  o£  George  Washington  was  the  work  of 
Bryant  Baker  of  New  York  City. 


175 


[43]    Feb.  22 


Public  Papers  of  the  Presidents 


43    Telegram  to  Labor  and  Management  Leaders  in  the 
Communications  Industry  Urging  a  6o-Day  Truce. 
February  22,  1950 


CYRUS  S.  CHING,  Director  of  the  Federal 
Mediation  and  Conciliation  Service,  has  re- 
ported to  me  the  status  of  the  disputes  be- 
tween communications  workers  of  America, 
CIO,  and  important  units  of  the  Bell  System 
which  operate  our  nationwide  network  of 
telephone  communications.  Mr.  Ching  in- 
forms me  that  insufficient  progress  has  been 
made  to  date  in  the  negotiations  between 
the  parties  to  give  reasonable  promise  of 
settlement  of  these  disputes  prior  to  Febru- 
ary 24,  or  to  give  assurance  of  uninter- 
rupted telephone  service  after  that  date.  I 
need  hardly  describe  or  emphasize  the  great 
damage  to  the  public  interest  and  welfare 
which  would  result  if  these  disputes  are  not 
settled  by  agreement. 

I  feel  very  strongly  that  employers  en- 
gaged in  the  operation  of  public  utilities  and 
unions  representing  their  workers  have  a 
special  and  extraordinary  responsibility  to 
settle  their  differences  by  agreement  and 
without  resort  to  economic  action  which  may 
deprive  the  public  of  the  benefits  of  essential 
services.  The  discharge  of  this  obligation 
requires  that  in  good  faith,  such  employers 
and  unions  canvass  and  weigh  most  thor- 
oughly all  demands  and  counter-offers  which 
are  made  in  their  bargaining  sessions  and 
that  they  consider  exhaustively  all  possi- 
bilities for  a  peaceful  resolution  of  the  issues 
in  dispute. 

In  many  of  the  negotiations  in  progress  in 
the  current  telephone  disputes  there  has 
clearly  been  insuflScient  time  for  adequate 


and  full  consideration  of  their  respective 
positions.  The  parties  have  a  duty  to  con- 
tinue their  efforts  to  work  out  a  peaceful 
solution  through  the  bargaining  process. 
The  special  obligation  and  duty  which  ap- 
plies to  public  utilities  and  the  unions  with 
which  they  deal  cannot  be  satisfactorily  dis- 
charged by  them  in  the  face  of  the  impend- 
ing February  24  deadline. 

Accordingly,  I  am  requesting  the  parties 
to  continue  work  and  operations,  without 
any  interruption  of  telephone  communica- 
tions in  the  Nation,  under  the  wages,  terms 
and  conditions  now  in  effect,  for  a  period  of 
60  days  from  February  24,  1950.  During 
that  period,  with  the  active  assistance  of  the 
Federal  Mediation  and  Conciliation  Service, 
they  should  earnesdy  seek  to  resolve  the  cur- 
rent disputes  through  collective  bargaining. 
Compliance  with  this  request  by  the  parties 
will  demonstrate  a  proper  regard  for  the 
public  interest  and  welfare. 

I  would  appreciate  your  advising  me  of 
your  acceptance. 

Harry  S.  Truman 

note:  This  is  the  text  of  identical  telegrams  sent 
to  44  management  and  labor  leaders  in  the  com- 
munications industry.  Some  40  replies,  agreeing 
to  the  President's  request  for  a  truce,  are  on  file  in 
the  Harry  S.  Truman  Library  in  Independence,  Mo. 
Labor  unrest  continued  throughout  most  of  1950 
and  did  not  fully  terminate  until  November  19,  1950. 
On  that  date  the  Communications  Workers  of  Amer- 
ica signed  a  15-month  pact  with  the  Western  Elec- 
tric Co.  and  the  Michigan  Bell  Telephone  Co.,  afl&li- 
ates  of  the  American  Telephone  and  Telegraph  Co. 


176 


Harry  S.  Truman,  ig^o 


Feb.  23    [44] 


44    The  President's  News  Conference  of 
February  23,  1950 


THE  PRESIDENT.  I  havc  no  Special  announce- 
ments to  make.  I  will  try  to  answer  ques- 
tions. 

[i.]  Q.  Mr.  President,  is  the  FEPC  bill 
which  the  House  passed  today  satisfactory 
to  you?  ^ 

THE  PRESIDENT.  I  haven't  seen  the  bill.  I 
haven't  read  it,  but  my  position  on  FEPC 
has  been  made  perfectly  plain  in  various 
messages  I  sent  the  Congress. 

Q.  Mr.  President,  this  is  a  slightly  philo- 
sophical question,  because  it  has  come  up 
several  times  in  the  debate  up  there.  Do  you 
think  it  is  possible  to  prohibit  or  legislate 
against  racial  discrimination,  against  people 
of  equal  aptitude  in  job  opportunity,  and 
still  permit  a  man  to  operate  his  business 
with  the  right  to  fire  and  hire  whom  he 
pleases? 

THE  PRESIDENT.  I  have  always  thought  so. 

Q.  Mr.  President,  we  couldn't  hear. 

THE  PRESIDENT.  I  Said  I  have  always 
thought  so. 

[2.]  Q.  Mr.  President,  Representative 
Durham,  who  is  the  Vice  Chairman  of  the 
Joint  House  and  Senate  Atomic  Energy 
Committee,  says  that  he  thinks  the  current 
agitation  for  a  new  approach  to  Russia  on 
atomic  control  might  be  dangerous.  I  just 
wondered  if  you  had  any  thoughts  on  that 
subject? 

THE  PRESIDENT.  Well,  I  dou't  know  what 
result  he  hopes  to  obtain.    We  have  made 


*  On  February  23  the  House  of  Representatives 
passed  a  bill  (H.R.  4453)  to  establish  a  Fair  Em- 
ployment Practice  Commission  and  to  aid  in  elimi- 
nating discrimination  in  employment  because  of  race, 
color,  or  creed.  The  Senate  failed  to  complete  action 
on  a  similar  bill  (S.  1728)  when  moves  to  invoke 
the  cloture  rule  were  defeated  on  May  19  and  July  12, 
1950. 


every  approach  possible  through  the  regular 
channels,  and  through  the  United  Nations, 
in  an  endeavor  to  reach  such  an  agreement. 
And  we  haven't  been  able  to  reach  it.  I 
don't  see  any  reason  for  what  they  call  a  new 
approach.  They  are  expecting  something 
highly  dramatic,  some  great  showpiece  to 
take  place.  I  don't  think  the  matter  can  be 
setded  in  that  manner,  and  I  have  never 
thought  so. 

Q.  I  don't  know  whether  I  have  got  his 
position  wrong,  but  he  says  that  the  current 
agitation  for  such  a  move  might  be  danger- 
ous. 

THE  PRESIDENT.  Well,  I  don't  kuow  about 
that.  I  don't  know  what  he  is  thinking 
about. 

Q.  Didn't  you  say  virtually  that  in  your 
Alexandria  speech  yesterday,  Mr.  President? 

THE  PRESIDENT.  Yes,  I  thought  I  made  it 
very  clear.  I  tried  to  put  it  in  the  simplest 
English  possible  in  that  Alexandria  speech, 
and  I  think  it  covers  the  situation  very  well.^ 

Q.  Has  there  been  any  sign  of  any  new 
feeler  from  Russia,  Mr.  President? 

THE  PRESIDENT.  No,  there  has  not. 

[3.]  Q.  Mr.  President,  do  you  plan  to 
send  another  representative  to  the  Vatican? 

THE  PRESIDENT.  The  matter  has  been 
under  consideration  ever  since  Mr.  Taylor 
resigned,  and  no  decision  has  been  reached 
as  yet. 

[4.]  Q.  Mr.  President,  Congressman 
Biemiller  of  Wisconsin  quoted  you  as  saying 
that  you  and  he  agree  that  you  would  like 
to  replace  Senator  Wiley  with  a  Democrat 
this  year.    I  wonder  if  that  is  correct? 

THE  PRESIDENT.  Well,  I  am  exceedingly 
hopeful  that  a  great  many  Republicans  will 

^  Item  42. 


177 


[44]    Feb.  23 


Public  Papers  of  the  Presidents 


be  replaced  by  Democrats,  and  of  course,  if 
Senator  Wiley  is  up  for  election,  that  would 
include  him.     [Laughterl 

[5.]  Q.  Mr.  President,  can  you  see  any 
danger  in  a  one-party  system? 

THE  PRESIDENT.  What's  that?  I  don't 
like  a  one-party  system.  We  haven't  two 
parties  now;  we've  got  about  four. 

[6.]  Q.  Mr.  President,  have  you  de- 
cided— this  action  of  the  Senate  yesterday, 
for  an  investigation  into  alleged  subversive 
employees  in  the  State  Department;  they 
voted  to  give  the  power  to  subpoena  confi- 
dential employment  and  loyalty  records.  I 
wonder  if  you  have  given  the  departments 
any  instructions  on  that? 

THE  PRESIDENT.  I  think  I  issued  very  clear 
instructions  on  that  some  time  back.  It  still 
stands.  I  have  told  the  Committee — ^the 
Foreign  Relations  Committee — ^that  I  would 
cooperate  with  them  in  every  way  possible  to 
disprove  false  charges  that  have  been  made 
by  Mr.  McCarthy. 

[7.]  Q.  Mr.  President,  what  are  the  four 
parties  you  had  in  mind? 

THE  PRESIDENT.  Well,  there's  the  Dixie- 
crats — half  Republican;  there's  the  Republi- 
can Party;  and  there's  what's  left  of  Mr. 
Wallace's  party;  and  there's  a  real  national 
party,  the  Democratic  Party.     [Laughter^ 

Q.  How  about  the  Socialist? 

THE  PRESIDENT.  Oh,  they  don't  count. 

Q.  They  don't  count? 

THE  PRESIDENT.  They  have  never  had  an 
electoral  vote  in  the  history  of  the  country. 

[8.]  Q.  Mr.  President,  are  you  consider- 
ing any  new  moves  in  the  coal  crisis  ? 

THE  PRESIDENT.  The  coal  crisis  is  in  the 
hands  of  the  courts  right  now,  and  I  have 
no  comment  to  make  on  that  question. 

Q.  Mr.  President,  are  you  getting  any  re- 
ports of  progress  from  your  observers  in  the 
coal  negotiations? 

THE  PRESIDENT.  I  hear  from  them  every 
day. 

178 


Q.  Are  there  any 

THE  PRESIDENT.  No  Comment  will  be  made 
on  the  matter.  It's  in  the  courts  now.  I  told 
you  that  to  begin  with.  I  can't  comment  on 
it.    It's  a  matter  for  the  courts. 

[9.]  Q.  Mr.  President,  in  answering  that 
question  about  the  McCarthy  investigation, 
you  said  you  told  the  Foreign  Relations  Com- 
mittee that  you  would  cooperate  in  any  way 
to  disprove  the  false  charges.  You  mean 
by  that  any  way  short  of  delivering  these 
records 

THE  PRESIDENT.  I  wiU  auswer  that  question 
when  it  comes  up.  You  needn't  put  words 
in  my  mouth 

Q.  I  didn't  mean  that  at  all. 

THE  PRESIDENT. as  I  told  someoue  else 

the  other  day. 

Q.  But  you  are  not  saying  now,  sir,  that 
you  won't  give  the  records 

THE  PRESIDENT.  I  am  uot  sayiug  anything 
further  to  what  I  said  in  my  directive  to  the 
various  departments,  which  is  very  clear.^ 

Q.  That  directive  still 

THE  PRESIDENT.  That  directive  still  stands. 

Q.  That  was  the  directive,  sir,  in  which 
you  said  not  to  turn  over  the 

THE  PRESIDENT.  That  is  correct. 

Q.  Mr.  President,  wasn't  there  something 
in  that,  sir,  that  said  to  refer  all  requests  to 
you? 

THE  PRESIDENT.  That  is  corrcct. 

Q.  That  part  of  it  still  stands? 

THE  PRESIDENT.  That  part  of  it  still  stands. 

Q.  The  subpoena  would  make  no  dififer- 
ence? 

THE  PRESIDENT.  Not  the  slightest  in  the 
world.  You  can't  very  well — ^I  was  going  to 
say,  it's  pretty  hard  to  serve  a  subpoena  on 
the  President  of  the  United  States. 
[Laughter]    Who  is  going  to  enforce  it? 


^For  the  President's  directive  of  March  15,  1948, 
on  the  need  for  maintaining  the  confidential  status 
of  employee  loyalty  records,  see  1948  volume,  this 
series,  Item  50. 


Harry  S.  Truman,  ig^o 


Feb.  23    [44] 


[10.]  Q.  Mr.  President,  if  it  is  contem- 
plated going  to  Grand  Coulee  this  spring, 
are  you  going  to  make  any  speeches  on  the 
way  out  and  on  the  way  back? 

THE  PRESIDENT.  Well,  I  have  been  invited 
to  dedicate  the  Grand  Coulee  Dam,  which 
is  now  finished — I  think  it  has  all  the  genera- 
tors in,  and  in  place.  And  there  has  been 
some  discussion  about  my  making  a  trip  out 
there.  No  decision  has  been  made  on  it, 
but  I  think  your  guess  is  right,  that  if  we 
do  go  there  will  be  some  stops  along  the 
road. 

Q.  That  was  the  nonpolitical  trip  you  were 
referring  to  last  week? 

THE  PRESIDENT.  That  is  corrcct.  Probably 
be  some  whistlestops  on  the  way  there  and 
on  the  way  back. 

Q.  Will  that  be  April  when 

THE  PRESIDENT.  No  dccision  has  been  made 
on  that  yet.  I  have  been  invited.  Like  every 
other  invitation  that  I  get — and  I  get  many 
every  day  to  go  somewhere^ — I  have  taken  it 
under  consideration. 

Q.  Mr.  President,  how  do  we  tell  what  is 
political  and  what  is  nonpolitical?  [Laugh- 
ter] 

THE  PRESIDENT.  You  wiU  havc  to  make  up 
your  own  mind  on  that.  That  is  for  you  to 
decide.     [Laughter] 

Q.  We  didn't  hear  that. 

THE  PRESIDENT.  I  told  her  that  is  for  her 
to  make  up  her  own  mind  on  that.  That 
is  for  her  to  decide,  whether  it  is  nonpolitical 
or  not. 

Q.  You  can  make  a  political  speech  or  a 
nonpolitical  speech. 

THE  PRESIDENT.  Oh  ycs,  it  Can  be  done  very 
nicely.  Any  speech  I  make  or  any  statement 
I  make  is  political.  It  doesn't  make  any 
difference  whether  it  is  made  here  or  whether 
it  is  made  in  Alexandria,  Va.,  or  in  New 
York,  or  on  the  back  platform  of  a  train. 

Q.  What  about  when  you  discuss  the  is- 
sues, Mr.  President? 


THE  PRESIDENT.  That  is  political,  too. 
[Laughter]     That  is  political,  too. 

Q.  Well,  when  is  it  not  political? 

THE  PRESIDENT.  Well,  here  is  the  situation 
you  have  got  to  take  under  consideration. 
The  speech  that  I  made  in  Alexandria  was  on 
the  bipartisan  foreign  policy.  That  is  not 
supposed  to  be  a  matter  for  local  political 
discussion.  That  is  to  be  treated  as  if  it  was 
a  speech  like  the  one  I  made  once  before, 
which  was  purely  a  domestic  political  state- 
ment of  my  views  and  how  they  ought  to  be 
carried  out.  I  was  speaking  in  Alexandria 
for  the  whole  country,  and  not  for  any  politi- 
cal party. 

Q.  How  would  you  define  political,  Mr. 
President? 

THE  PRESIDENT.  Well,  there  are  lots  of 
definitions  for  it. 

Q.  What  is  yours? 

THE  PRESIDENT.  I  think  I  have  told  you 
that  a  politician  is  a  man  who  understands 
government.  Usually,  if  he  understands  it 
well  enough  and  has  made  a  reputation,  as 
he  should  have,  he  will  wind  up — ^when  he 
is  dead — ^by  being  called  a  statesman.  You 
have  to  have  your  own  definition  of  what  to 
call  things  political.  It  depends  altogether 
on  what  your  viewpoint  is.  If  you  are  for  it, 
it  is  statesmanlike.  If  you  are  against  it,  it 
is  purely  low  politics!     [Laughter] 

[11.]  Q.  Mr.  President,  how  would  you 
define  the  speech  of  Senator  Byrd,  who 
called  you  a  stumbling  block  to  balancing 
the  budget? 

THE  PRESIDENT.  That  is  purely  political. 
[Laughter] 

Q.  He  was  a  statesman. 

Q.  What  was  that  question,  sir,  we  didn't 
get  that  question? 

THE  PRESIDENT.  He  Wanted  to  know  how 
I  would  define  Senator  Byrd's  statement  in 
yesterday's  Baltimore  Sun — ^the  Sun  is  a  great 
supporter  of  Byrd — and  I  said  it  was  purely 
political. 


179 


[44]    Feb.  23 


Public  Papers  of  the  Presidents 


[12.]  Q.  Mr.  President,  would  you  de- 
fine that  half -Republican  Party  some  more? 

THE  PRESIDENT.  The  half-  Republican 
Party?  Well,  the  Republican  Party  is  split 
in  two.  It  has  two  wings,  just  like  the  Demo- 
cratic Party  does. 

[i3«]  Q'  Mr.  President,  have  you  any  in- 
tention of  listening  in  on  the  radio  this  eve- 
ning to  the  results  of  the  British  elections? 

THE  PRESIDENT.  I  don*t  think  it  is  possible 
to  get  the  returns  immediately.  The  last 
time  the  British  had  an  election,  it  was  3 
days  before  they  decided  to  count  the  vote. 
And  I  think  we  will  have  to  wait  until  the 
report  is  made  by  the  people  who  count  the 
votes.  They  don't  count  their  votes  like 
we  do.  They  impound  them  and  then  after 
they  have  been  collected  they  count  the  votes 
at  a  later  time,  after  the  election. 

[14.]  Q.  Mr.  President,  do  you  feel  that 
the  Voice  of  America  is  handicapped  by  the 
difficulty  of  getting  news  up  on  the  Hill? 

THE  PRESIDENT.  Yes  I  do,  and  I  think  it  is 
also  handicapped  by  a  lack  of  appropriations, 
principally. 

[15.]  Q.  Mr.  President,  when  you  spoke 
about  the  difficulty  of  serving  a  subpoena  on 
you,  did  you  mean  you  were  protected  by 
the  courts  or  the  Secret  Service? 


THE  PRESIDENT.  I  am  protected  by  the  Gov- 
ernment of  the  United  States.  You  ought 
to  know  that  it  has  been  tried.  You  re- 
member a  certain  statement  by  a  gendeman 
named  Jackson?  "The  Chief  Justice  of  the 
Supreme  Court  has  made  his  decision,  now 
let  us  see  him  enforce  it."  You  remember 
that,  don't  you? 

Q.  Oh  yes. 

[16.]  Q.  Mr.  President,  going  back  to 
coal,  Mr.  Case  put  in  a  bill  today  to  declare 
a  national  emergency.* 

THE  PRESIDENT.  What's  that? 

Q.  Mr.  Case  put  in  a  bill  in  the  House  to- 
day to  declare  a  national  emergency  in  the 
coal  situation,  and  asks  the  coal  miners  back 
and  asks  the  Government  to  call  out  the 
National  Guard  to  make  them  go  back.  Do 
you  think  that  will  do  any  good? 

THE  PRESIDENT.  I  have  no  comment  on 
that. 

Reporter:  Thank  you,  Mr.  President. 

THE  PRESIDENT.  You're  welcome. 

note:  President  Truman's  two  hundred  and 
eighteenth  news  conference  was  held  in  his  office 
at  the  White  House  at  4  p.m.  on  Thursday,  Febru- 
ary 23,  1950. 

*  The  bill  was  referred  to  the  Committee  on  Edu- 
cation and  Labor.  It  was  not  reported  out  by  that 
Committee. 


45    Radio  Remarks  Opening  the  Red  Cross  Campaign. 
February  28,  1950 

[  Broadcast  from  the  White  House  at  10:54  P-"^*  ] 


General  Marshall,  my  fellow  Americans: 

Tonight  many  of  you  have  heard  from 
the  lips  of  individuals  what  the  Red  Cross 
has  meant  to  them  and  to  their  loved  ones. 
These  examples  represent  a  few  authentic 
reports  from  this  great  organization's  files. 
They  tell  the  story  of  the  Red  Cross  more 
vividly  than  any  statistics  I  could  quote. 
These  testimonials  from  the  people  translate 
figures  and  costs  into  good  deeds.   They  give 


new  meaning  to  the  balance  sheet. 

After  all,  the  Red  Cross  interests  itself  al- 
most solely  in  meeting  human  needs — 
whether  the  demands  are  in  the  field  of  dis- 
aster relief;  in  safeguarding  health;  in  safe- 
ty work;  in  providing  lifesaving  blood  and  its 
derivatives  without  charge;  or  in  its  invalu- 
able services  to  our  armed  forces  and  to  our 
veterans.  Here  is  an  agency  that  has  be- 
come almost  indispensable  in  our  community 


180 


Harry  S.  Truman,  ig^o 


Mar.  2    [46] 


life  today.  It  is  a  neighborly  service.  At  the 
same  time,  its  help  is  available  to  distressed 
people  around  the  world. 

There  could  be  no  finer  testimonial  to  the 
Red  Cross  than  the  devotion  it  inspires  in  its 
volvmteers — ^men  and  women  whose  sole 
reward  is  the  deep  satisfaction  of  service  to 
others. 

Tonight,  2,000,000  of  these  messengers  of 
goodwill  stand  ready  to  visit  your  homes  or 
your  places  of  business  tomorrow  and 
throughout  the  month  of  March — in  every 
city,  town,  and  hamlet  of  our  land.  These 
are  the  campaign  solicitors  of  the  American 
Red  Cross.  Let  us  remember  that  all  the 
workers  in  this  voluntary  army  are  giving 
not  only  of  their  funds,  but  of  their  time  and 
energy  as  well.  These  public-spirited  men 
and  women  are  entided  to  a  hearing  when 
they  call  on  you. 

Through  your  response  to  their  appeal  the 
Red  Cross  becomes  your  agent  to  do  for  your 


less  fortunate  neighbors  the  things  you  would 
do  yourself  if  you  could  be  at  the  scene  when 
the  calamity  strikes,  or  when  the  accident 
occurs,  or  when  a  man  in  uniform  or  an 
ex-serviceman  needs  a  helping  hand. 

In  all  that  it  does,  the  Red  Cross  is  flexible 
enough  to  provide  aid  which  is  entirely  per- 
sonal, yet  strong  enough  to  deal  with  major 
disasters  involving  hundreds  of  thousands 
of  individuals. 

The  Red  Cross  belongs  to  the  American 
people.  It  is  your  organization.  As  Presi- 
dent of  the  United  States,  I  enrolled  in  the 
Red  Cross  earlier  today.  I  consider  this 
annual  enrollment  a  genuine  privilege.  In 
these  fateful  days,  I  ask  all  Americans  to  join 
in  responding  to  a  great  humanitarian 
appeal. 

note:  In  his  opening  words  the  President  referred  to 
General  of  the  Army  George  C.  Marshall,  President 
and  Chairman  of  the  Board  of  Governors  of  the 
American  National  Red  Cross. 


46    The  President's  News  Conference  of 
March  2,  1950 


THE  PRESIDENT,  [i.]  I  have  uo  Special 
announcements  to  make,  but  I  have  been 
trying  to  work  out  a  situation  that  would 
make  it  more  convenient  at  these  press 
conferences.  I  have  discussed  the  matter 
with  Mr.  Ross,  and  I  will  appreciate  it  if  the 
White  House  correspondents  will  appoint  a 
committee  to  confer  with  Mr.  Ross. 

I  would  like  to  find  a  place  to  hold  these 
press  conferences  where  the  acoustics  are 
good  and  where  everybody  would  have  a 
fair  chance  to  hear  the  questions  and  to 
recognize  the  one  who  asks  the  question, 
and  also  to  hear  the  answer  plainly.  This 
situation  here  is  not  satisfactory,  especially 
to  those  who  happen  always  to  get  in  the 
rear  ranks. 

And  if  you  will  please  confer  with  Mr. 


Ross,  we  will  see  if  we  can't  make  some  plan 
where  everybody  will  have  a  better  chance 
at  these  press  conferences. 

Q.  Bravo. 

Q.  Thank  you,  sir. 

Q.  Mr.  President,  if  you  have  no  an- 
nouncements, do  you  agree  with  Senator 
Humphrey  and  Senator  Lucas  that  the  Byrd 
Nonessential  Expenditures  Committee  ^ 
should  be  abolished? 

THE  PREsmENT.  I  havcn't  gone  into  that 
controversy,  so  I  can't  answer  intelligendy, 

[2.]  Q.  Mr.  President,  can  you  tell  us 
about  the  Niagara  treaty  that  was  signed 
Monday  by  Canada  and  the  United  States, 


^  Joint  Committee  on  Reduction  of  Nonessential 
Federal  Expenditures,  of  which  Senator  Harry  F. 
Byrd  of  Virginia  served  as  chairman. 


181 


[46]    Mar.  2 


Public  Papers  of  the  Presidents 


dealing  with  the  diversion  of  water  to  falls 
and  the  creation  of  power  there? 

THE  PRESIDENT.  That  has  been  under  con- 
sideration for  some  time,  and  we  have  finally 
reached  an  agreement  on  it.  And  it  has 
been — I  think  it  has  been  sent  to  the  Senate 
for  ratification.^ 

Q.  It  has  been? 

THE  PRESIDENT.  It  wiU  be,  if  it  hasn't. 

Q.  No  delay  on  that,  so  far  as  you  know? 

THE  PRESIDENT.  Not  that  I  kuOW  of. 

Q.  What  do  you  think  about  the  possi- 
bility of  Federal  development  of  that  power 
up  there? 

THE  PRESIDENT.  Well  now,  you  had  better 
ask  the  Congress  about  that.  I  have  been 
fighting  for  that  for  15  years.  If  the  Con- 
gress will  perform,  why,  we  will  do  the  job. 

Q.  Is  there  a  question  between  private  de- 
velopment and  Federal  development? 

THE  PRESIDENT.  Not  SO  far  as  I  am  con- 
cerned. It  is  public  development  so  far  as 
I  am  concerned. 

[3.]  Q.  Mr,  President,  you  are  having 
lunch  today,  I  believe,  with  Dr.  Li,  who  has 
been  acting  President  of  China? 

THE  PRESIDENT.  That's  right.  And  he  is — 
still  says  he  is. 

Q.  In  what  capacity  is  he  coming  in? 

THE  PRESIDENT.  He  IS  comiug  in  as  the 
acting  President  of  China.  That  is  the 
reason  he  was  invited  for  luncheon. 

Q.  What  happened  to  Chiang  Kai-shek? 

THE  PRESIDENT,  I  am  not  in  communica- 
tion with  Chiang,  I  can't  tell  you. 
{Laughterl 

Q.  He  says  he  is  going  to  come  back  on 
the  mainland — I  am  not  trying  to  get  you  on 
the  spot  over  it,  but  anything  interesting 
along  that  line  would  be— I  think  it  would 
be 

THE  PRESIDENT.  I  have  nothing  to  say  on 
the  subject. 

[4.]    Q.  Mr.  President,  there  is  a  story 

^  See  Item  99. 


going  around  that  after  Judge  Keech  ^  gets 
through  with  this  coal  case,  that  the  Gov- 
ernment is  preparing  to  move  in  with  seizure 
powers,  and  there  will  be  a  request  from  the 
Government.  Is  there  anything  on  that  you 
can  tell  us  about? 

THE  PRESIDENT.  No,  I  cau't  Say  anything 
about  that  because  that  matter  is  still  pend- 
ing in  the  courts,  and  I  don't  want  to  make 
any  announcements  or  suggest  any  action 
until  the  court  has  had  a  chance  to  decide.* 

Q.  Mr.  President,  there  is  another  report 
that  the  order  for  seizure  has  been  drawn 
up — ^technical  draft? 

THE  PRESIDENT.  There  has  always  been  a 
technical  draft  of  all  the  war  powers  on  hand, 
in  case  it  is  necessary  to  use  them.  Nothing 
new. 

[5.]  Q.  Mr.  President,  I  understand  the 
Security  Council  does  not  think  much  of 
these  ideas  that  are  going  around,  preparing 
to  move  the  Capital.  Is  there  anything  you 
could  tell  us  about  that? 

THE  PRESIDENT.  No,  I  have  no  comment 
on  that. 

Q.  What  do  you  think  of  it? 

THE  PRESIDENT.  I  am  Very  well  satisfied 
right  where  I  am  now,  and  I  feel  perfecdy 
safe.     [Laughterl 

[6.]  Q.  Mr.  President,  are  you  consider- 
ing the  State  Department  proposal  to  form 
an  interdepartmental  committee  to  unify 
domestic  and  foreign  economic  policies? 

THE  PRESIDENT.  Ask  that  qucstiou  again. 
I  didn't  get  it. 

Q.  There  is  a  report  that  the  State  Depart- 
ment proposes  to  form  an  interdepartmental 
committee  to  consider  unifying  domestic  and 
foreign  economic  policies? 

THE  PRESIDENT.  That  may  be  under  con- 
sideration.   It  has  not  been  put  up  to  me. 

[7,]     Q.  Mr.  President,  James  F.  Byrnes 


"Judge  Richmond  B.  Keech  of  the  U.S.  District 
Court  for  the  District  of  Columbia. 
*  See  Items  49,  50. 


182 


Harry  S.  Truman,  ig^o 


Mar.  2    [46] 


proposed  today  that  we  abolish  the  withhold- 
ing tax,  on  the  theory  that  tax  paying  is  more 
painful  and  there  might  be  emphasis  on 
economy.  I  wonder  if  that  would  really 
help? 

THE  PRESIDENT.  I  don't  know.  You  will 
have  to  talk  to  Mr.  Byrnes  on  that.  He  has 
had  a  lot  of  experience.     [Laughter] 

[8.]  Q.  Mr.  President,  I  had  in  mind  the 
fact  that  President  Gonzalez  of  Chile  is  to 
come  up  here,  I  believe  in  April.  Have  you 
yet  formulated  or  approved  an  itinerary,  or 
do  you  have  any  general  comment  about 
the  visit? 

THE  PRESIDENT.  No,  hc  will  be  treated  as 
all  these  heads  of  states  are.  Whatever  he 
chooses  to  see  and  examine.  We  will  fur- 
nish him  with  all  the  hospitality  this  coun- 
try can  furnish — ^as  we  always  furnish  it. 

Q.  You  are  looking  forward  to  his  visit? 

THE  PRESIDENT.  Oh  ycs,  he  has  already  ac- 
cepted the  invitation. 

Q.  I  don't  know  when  it  would  be. 

THE  PRESIDENT.  April  1 2th,  I  think,  is  the 
date. 

[9.]  Q.  Mr.  President,  you  have  men- 
tioned seizure  of  the  coal  mines.  Do  you 
Still  have  any  of  your  war  powers 

THE  PRESIDENT.  No. 

Q.  All  expired? 

THE  PRESIDENT.  All  expired. 

Q.  Mr.  President,  would  that  apply  also  to 
your  inherent  powers? 

THE  PRESIDENT.  No — ^finc  line  to  be 
drawn — ^we  will  cross  that  bridge  when  we 
come  to  it. 

Q.  Mr.  President,  Henry  Ford  says  the 
situation  is  so  serious  that  the  country  will 
be  closed  down — he  makes  it  very  sweeping, 
2  weeks — ^if  these  coal  strikes  continue.  Do 
you  think  that  the  situation  is  that  serious? 

THE  PRESIDENT.  I  Can't  auswer  that  ques- 
tion. I  don't  know  whether  it  is  or  not.  I 
know  the  situation  is  very  serious.  It  is  an 
emergency.     And   that   is   what   the   law 


provides,  that  in  case  of  an  emergency 
we  have  to  consider  certain  procedures.  We 
have  been  following  the  law  to  the  letter 
trying  to  enforce  it. 

Q.  Mr.  President,  is  this  the  first  time  that 
you  have  said  to  us  that  it  is  an  emergency? 

THE  PRESIDENT.  No,  it  is  uot.  I  aunounccd 
an  emergency  when  I  appointed  the  board. 
It  requires  the  announcement  of  an  emer- 
gency, and  that  board  has  to  find  an  emer- 
gency before  the  court  can  act. 

[10.]  Q.  Mr.  President,  there  has  been 
quite  a  lot  of  criticism  lately  that  the  econ- 
omies in  the  Defense  Department  have 
weakened  our  defenses  dangerously.  Could 
you  comment  on  that? 

THE  PRESIDENT.  I  don't  think  that  is  true. 
I  don't  think  there  is  a  word  of  truth  in  it. 
You  can  speculate  on  anything  you  like,  but 
I  think  you  will  find  that  the  national  defense 
situation  is  in  better  shape  than  it  has  ever 
been  in  times  when  we  were  not  at  war. 

[11.]  Q.  Mr.  President,  there  have  been 
some  reports  recently  that  you  plan  to  turn 
over  the  loyalty  reports  to  the  committee 
making  that  investigation.  Can  you  tell  us 
something  about  that? 

THE  PRESIDENT.  I  think  I  made  the  state- 
ment here  the  other  day  that  I  was  perfectly 
willing  to  cooperate  with  the  committee  in 
furnishing  them  with  information.  We  will 
cross  the  loyalty  file  business  when  we  get 
to  it. 

But  just  for  your  information,  if  people 
really  were  in  earnest  and  had  the  welfare  of 
the  country  at  heart,  and  they  really  thought 
that  somebody  in  the  Government  was  not 
loyal  or  did  not  do  his  job  right,  the  proper 
person  with  whom  to  take  that  up  is  the 
President  of  the  United  States. 

And  the  President  of  the  United  States  is 
the  only  one  who  has  taken  any  concrete 
action  on  any  of  these  things.  The  appoint- 
ment of  this  loyalty  board,  and  the  screen- 
ing of  employees  when  the  word  got  around 


183 


[46]    Mar.  2 


Public  Papers  of  the  Presidents 


that  there  might  be  some  disloyal  ones  among 
the  employees  in  the  Government,  was  done 
by  the  President. 

The  prosecution  of  the  Communists  in 
this  country  for  disloyalty  and  sabotage  has 
been  carried  on  at  the  direction  of  the  Presi- 
dent. I  don't  think  anybody  else  has  made 
any  concrete  endeavor  to  get  to  the  bottom 
of  this  thing  except  the  President  of  the 
United  States  and  the  executive  branch  of 
the  Government. 

[12.]  Q.  Mr.  President,  the  civil  rights 
conference  here — to  v^hich  you  sent  a  note  of 
greeting — ^wound  up  by  adopting  a  resolu- 
tion asking  you  to  appoint  a  commission  to 
make  a  thorough  study  of  the  establishment 
of  civil  rights,  particularly  as  affecting — civil 
liberties — ^particularly  as  affecting  the  loyalty 
program.    Do  you  plan 

THE  PRESIDENT.  As  afifectcd  by  what  ? 

Q.  By  the  loyalty  program. 

THE  PRESIDENT.  I  think  that  the  loyalty 
program  was  worked  out  with  civil  liberties 
in  view.  And  I  think  if  you  will  follow  the 
procedure  that  was  followed  by  the  loyalty 
investigations,  you  will  find  that  nobody's 
civil  liberties  have  been  infringed,  and  no- 
body's civil  liberties  will  be  infringed.  I 
think  I  made  that  perfectly  clear  when  I  was 
talking  to  the  district  attorneys  and  the  law 
enforcement  officers  who  were  here  the  other 
day.  If  you  will  read  the  speech,^  I  think 
you  will  get  the  fundamental  basis  on  which 
I  am  trying  to  uphold  the  Bill  of  Rights. 
That  is  one  of  the  most  important — I  think 
the  most  important  part  of  the  Constitution 
of  the  United  States. 

[13.]  Q.  Mr.  President,  yesterday  Sen- 
ator Harry  F.  Byrd  suggested  that  he  would 
turn  over  his  salary  in  order  to  balance  the 
budget.    Have  you  any  comment  on  that? 

THE   PRESIDENT.   That  is   a  very   liberal 
gesture  on  the  part  of  the  Senator.     [Laugh- 
ter] 
''Item  37. 


Pete^  has  been  trying  to  ask  a  ques- 
tion. 

[14.]  Q.  Do  you  think  Senator  Mc- 
Mahon's  proposals  on  the  conference  are 
feasible?  ^ 

THE  PRESIDENT.  I  havc  no  commeut  on 
that,  Pete. 

What  was  your  question? 

Q.  That  was  part  of  mine.  I  wondered  if 
you  are  going  to  Moscow  soon  to 

THE  PRESIDENT.  I  think  I  made  it  per- 
fectly plain  that  I  am  not  going  to  Moscow 
ever.  The  door  is  open  here  for  anybody 
that  wants  to  come  to  this  country,  but  I 
am  not  going  to  Moscow. 

Q.  That  is  a  perfectly  plain  answer,  but 
may  I  make  an  amendment  in  addition  to 
Pete's  question?  McMahon  is  apparently 
trying  to  do  something  along  the  line  that 
you  have  suggested  through  the  United  Na- 
tions  

THE  PRESIDENT.  That  is  correct. 

Q. and  if  he  does  such  a  thing,  would 

you  object  to  it? 

THE  PRESIDENT.  Why  Certainly  not — cer- 
tainly not.  I  will  object  to  nothing  that  will 
contribute  to  the  peace  of  the  world.  I  will 
cooperate  wholeheartedly  with  anything 
that  will  contribute  to  the  peace  of  the 
world.  I  think  I  have  made  that  per- 
fecdy  plain  all  the  time. 

Q.  Yes. 

[15.]  Q.  Mr.  President,  would  you  ac- 
cept an  invitation  from  the  President  of 
Chile  to  come  down  there? 

THE  PRESIDENT.  Well,  I  would  like  to, 
very  much,  but  I  can't  accept  right  now, 
definitely. 

Q.  I  believe  there  is  to  be  a  power  proj- 
ect that  has  been  built  by  American  money 
dedicated  down  there  in  the  spring? 

•Raymond  P.  Brandt  of  the  St.  Louis  Post-Dis- 
patch. 

'Senator  Brien  McMahon  of  Connecticut  had 
proposed  that  the  United  Nations  General  Assembly 
hold  a  meeting  in  Moscow. 


184 


Harry  S.  Truman,  ig^o 


Mar.  2    [47] 


THE  PRESIDENT.  So  I  Understand. 

Q.  That  would  be  the  occasion  that  they 
would  want  you  to  come? 

THE  PRESIDENT.  I  Can't  make  any  commit- 
ments for  any  trips  away  from  Washington 
at  the  present  time. 

[16.]  Q.  Mr.  President,  have  you  de- 
cided on  a  trip  in  May  over  to  Chicago  and 
the  Midwest? 

THE  PRESIDENT.  That  is  Under  contempla- 
tion, but  when  the  decision  is  made,  why 
it  will  be  announced  in  plenty  of  time  so 
that  you  can  get  your  grip  packed. 
[Laughter'] 

[17.]  Q.  How  did  you  interpret  the 
British  elections? 

THE  PRESIDENT.  I  didn't  interpret  it — 
[laughter] — plenty  of  people  that  will  do 
that  for  me. 

[18.]  Q.  Mr.  President,  the  real  estate 
lobby  seems  to  have  launched  a  new  cam- 
paign to  end  rent  control  by  June  30th.  Do 
you  have  anything  to  say  about  that? 

THE  PRESIDENT.  I  had  my  say  about  that 
in  the  Message  to  Congress  on  the  State  of 
the  Union.    I  am  still  behind  that  message. 


[19.]  Q.  Mr.  President,  when  you  said 
you  weren't  going  to  Moscow  ever,  you 
mean  in  connection  with  the  present  series 
of  problems? 

THE  PRESIDENT.  I  mean  that  I  will  never 
go  to  Moscow  while  I  am  President  of  the 
United  States.  That  make  it  perfectly  plain  ? 
I  hope  I  will  have  a  chance  to  go  there  when 
I  get  through  being  President.  [Laughter] 
I  would  like  to  see  the  place. 

Q.  Any  idea  when  that  might  be,  Mr. 
President? 

THE  PRESIDENT.  Well — [more  laughter] — 
your  guess  is  as  good  as  mine. 

[20.]  Q.  Mr.  President,  do  you  have  any 
comment  on  the  sentencing  of  Dr.  Fuchs?  ® 

THE  PRESIDENT.  No  Comment. 

Reporter:  Thank  you,  Mr.  President. 

THE  PRESIDENT.  You're  welcome. 

note:  President  Truman's  two  hundred  and  nine- 
teenth news  conference  was  held  in  his  office  at  the 
White  House  at  10:30  a.m.  on  Thursday,  March  2, 
1950. 


^Dr.  Klaus  Fuchs,  German-born  official  of  the 
British  Government's  atomic  energy  establishment, 
who  was  sentenced  on  March  i  to  14  years  in  prison 
for  disclosing  atomic  secrets  to  the  Soviet  Union. 


47    Letter  to  the  Chairman,  House  Committee  on  Education  and 
Labor,  on  Federal  Aid  to  Education.     March  2,  1950 


Dear  Chairman  Lesins\i: 

I  have  received  your  letter  of  March  first, 
and  the  enclosed  resolution  with  respect  to 
Federal  aid  to  education  that  was  adopted  by 
the  Committee  on  Education  and  Labor. 

The  text  of  that  resolution  as  transmitted 
to  me  is  as  follows: 

"resolution 

"Whereas  the  Committee  on  Education 
and  Labor  of  the  House  of  Representatives 
in  no  way  wants  to  report  legislation  that 
might  lead  to  Federal  Control  of  the  schools 


of  America;  and 

"Whereas  the  United  States  Office  of 
Education  is  a  department  within  the  Fed- 
eral Security  Agency  and  this  committee  has 
had  no  assurance  from  the  President  that  the 
Commissioner  of  Education  will  have,  by 
Presidential  authorization,  sole  jurisdiction 
over  the  administration  and  conduct  of  all 
provisions  of  any  act  on  Education  that 
might  be  reported  out  of  committee  without 
interference  from  the  Administrator  of  the 
Federal  Security  Agency  or  any  of  his  ap- 
pointed assistants;  and 

"Whereas  this  Committee  requests  this 


41-355—65 


-15 


185 


[47]    Mar. 


Public  Papers  of  the  Presidents 


assurance  in  all  good  faith  and  sincerity  so 
that  in  no  manner  in  the  years  to  come  could 
their  consideration  of  Federal  Aid  to  Educa- 
tion be  construed  to  mean  that  they  sup- 
ported legislation  that  might  lead  to  Federal 
Control  of  the  schools  of  America;  Therefore 
be  it 

"Resolved,  That  the  Committee  on  Edu- 
cation and  Labor  of  the  House  of  Representa- 
tives will  not  report  any  bills  pertaining  to 
Federal  Aid  to  the  Public  Schools  of  America 
until  the  President  of  the  United  States  sub- 
mits a  statement  to  said  Committee  clarifying 
the  authority  and  re-defining  the  duties  of 
the  United  States  Commissioner  of  Education 
with  regard  to  all  functions  of  the  adminis- 
tration of  school  laws — and  that  the  President 
inform  the  Federal  Security  Administrator 
of  this  clarification." 

According  to  this  resolution,  the  Commit- 
tee on  Education  and  Labor  is  opposed  to 
Federal  control  of  the  schools  of  America. 
I,  too,  am  opposed  to  Federal  control  of  the 
schools.  I  have  so  stated  many  times,  and 
that  continues  to  be  my  position.  The  gov- 
ernments of  the  states,  the  schools  of  Amer- 
ica, the  citizens  who  have  responsibility  for 
the  welfare  of  our  educational  system  are  also 
opposed  to  Federal  control  of  the  schools  of 
America.  The  Senate  of  the  United  States, 
when  it  passed  a  bill  to  provide  for  Federal 
aid  to  education,  made  it  perfectly  clear  that 
it  was  opposed  to  Federal  control  of  the 
schools,  and  the  terms  of  that  bill  are  explicit 
in  prohibiting  Federal  control  of  the  schools. 
On  this  question,  there  seems  to  be  general 
agreement. 

The  resolution  you  have  transmitted  to  me 
proceeds,  however,  by  a  process  of  reasoning 
which  I  do  not  follow,  to  relate  this  prin- 
ciple of  freedom  from  control  to  the  position 
of  the  Office  of  Education  in  the  Federal 
Security  Agency.  If  there  is  to  be  no  Federal 
control  in  any  case,  I  fail  to  see  how  any  Fed- 
eral control  can  grow  out  of  any  possible 


relationship  between  these  two  offices. 

When  I  say  I  am  opposed  to  Federal  con- 
trol of  the  schools,  I  mean  I  am  opposed  to 
control  by  any  officer  or  department  of  the 
Federal  Government,  whether  it  be  the 
United  States  Office  of  Education,  the  Fed- 
eral Security  Agency,  or  any  other  bureau 
or  official.  I,  therefore,  do  not  understand 
how  the  relationship  between  any  of  these 
offices  or  agencies  is  of  any  relevance  to  the 
problem  of  keeping  the  schools  of  America 
free  of  Federal  control. 

The  relationship  between  these  offices  and 
agencies  is  of  importance  in  increasing  eflS- 
ciency  and  effecting  economies  in  the  opera- 
tion of  the  Federal  Government.  In  my 
recommendations  for  the  organization  and 
reorganization  of  the  Federal  Government, 
I  shall  continue  to  be  guided  by  these  princi- 
ples of  greater  efficiency  and  economy.  I 
believe  that  these  principles  have  the  sup- 
port of  the  Congress  and  the  great  majority 
of  the  people. 

The  task  before  the  Committee  on  Edu- 
cation and  Labor  is  to  consider  the  need  for 
Federal  assistance  to  the  schools,  and  the 
ways  of  meeting  it,  and  then  to  devise  a  pro- 
gram which  will,  among  other  things,  pre- 
vent all  Federal  officers  who  may  have  any- 
thing to  do  with  its  administration  from 
excersing  a  control  over  matters  which,  we 
are  all  agreed,  should  be  left  to  the  States. 

The  Commissioner  of  Education,  the  Fed- 
eral Security  Administrator,  or  other  officers 
of  the  Government  cannot  and  will  not  do 
more  than  to  exercise  the  functions  and  carry 
out  the  duties  imposed  by  law  on  the  Execu- 
tive branch.  This  will  be  true  in  the  case 
of  Federal  aid  to  education,  if  such  aid  is 
authorized,  as  it  is  in  all  other  matters. 

I  see  no  reason  why  detailed  questions  of 
administrative  organization  should  delay  or 
impede  the  Committee  in  considering  and 
acting  upon  the  problem  of  Federal  aid  to 
education.    I  have  long  recommended  the 


i86 


Harry  S.  Truman,  ig^o 


Mar.  3    [49] 


creation  of  a  new  department  which  will 
include  the  present  Office  of  Education  and 
other  governmental  functions  in  the  field  of 
education,  health,  and  welfare.  I  have  rec- 
ommended that  this  department  be  orga- 
nized in  accordance  with  the  best  principles 
of  administrative  management,  which  re- 
quire a  degree  of  responsibility  in  the  depart- 
ment head  sufficient  to  reduce  the  number 
of  inter-bureau  controversies  and  issues  that 
require  Presidential  attention. 

I  do  not  see  any  reason  to  depart  from 
these  principles  at  this  time.  They  will  not 
in  any  way  increase  the  powers  of  any  Fed- 
eral officer  over  our  schools  if  the  Congress 
performs  its  task,  as  I  am  sure  it  will,  of 
devising  and  enacting  a  satisfactory  system 
of  Federal  aid  based  upon  the  concept  that 
the  control  of  education  rests  with  the  states. 


The  schools  of  the  country  are  laboring 
under  increasing  burdens,  and  the  need  of 
Federal  action  to  protect  our  children  from 
the  growing  blight  of  poor  and  inadequate 
education  is  ever  more  pressing. 

I  sincerely  hope  that  your  Committee  will 
soon  complete  favorable  action  on  legislation 
of  this  character.    I  am  sure  that  I  can  count 
on  your  support  to  this  end. 
Very  sincerely  yours, 

Harry  S.  Truman 

( Honorable  John  Lesinski,  Chairnian,  Committee  on 
Education  and  Labor,  House  of  Representatives, 
Washington,  D.C.] 

note:  The  President  referred  to  a  bill  (S.  246)  pro- 
viding for  Federal  aid  to  elementary  and  secondary 
schools,  passed  by  the  Senate  on  May  5,  1949,  and 
under  consideration  by  the  House  Committee  on 
Education  and  Labor  at  the  time  of  his  letter.  The 
bill  was  not  reported  out  by  the  House  Committee. 


48    Remarks  to  a  Group  From  the  Ninth  Annual 
Science  Talent  Search.    March  2,  1950 


WELL,  it  is  a  pleasure  to  have  you  here, 
and  I  appreciate  Mr.  Davis  bringing  you  in. 
You  have  a  career  before  you  that  is  ab- 
solutely essential  to  the  v^elfare  of  this  great 
Nation  of  ours. 

The  development  of  brains  is  much  more 
important  and  much  more  necessary  than 
the  development  of  brawn,  although  we  need 
both.  We  must  have  a  good  healthy  body  if 
we  are  going  to  have  a  good  healthy  mind. 
I  believe  in  that  sincerely. 

I  am  glad  that  you  are  prizewinners,  and 
I  hope  you  will  continue  your  studies,  as 


Mr.  Davis  says,  to  be  of  some  practical  use 
to  this  great  country  with  scientific  devel- 
opments for  peace  and  for  the  welfare  of 
the  world.  That  is  what  we  are  working 
for  most. 

note:  The  President  spoke  at  12:05  P-m.  in  his 
office  at  the  White  House.  In  his  opening  words 
he  referred  to  Watson  Davis,  Director  of  Science 
Service,  who  conducted  the  talent  search  for  West- 
inghouse  Electric  Corporation. 

The  group  was  composed  of  40  young  men  and 
women  from  15  States.  All  were  winners  of 
Westinghouse  Science  Scholarships  awarded  by  the 
Corporation. 


49    Special  Message  to  the  Congress  on  the  Coal  Strike. 
March  3,  1950 


To  the  Congress  of  the  United  States: 

I  wish  to  report  to  the  Congress  on  the 
emergency  confronting  the  Nation  as  a  result 


of  a  shortage  of  coal,  and  to  recommend  legis- 
lative action. 

Since  February  6,  1950,  the  production  of 


187 


[49]    Mar.  3 


Public  Papers  of  the  Presidents 


bituminous  coal  has  been  dangerously  cur- 
tailed. By  now,  stocks  of  coal  are  almost 
exhausted,  and  many  parts  of  our  country 
face  crisis  conditions.  The  anthracite  coal 
which  is  being  produced,  and  the  trickle  of 
soft  coal  output,  together  have  been  enough 
to  stave  off  human  suffering.  But  the  lack 
of  normal  production  of  soft  coal  is  bringing 
many  basic  industries  to  a  halt. 

A  variety  of  emergency  measures  have 
been  taken  in  recent  days  and  weeks.  Trans- 
portation and  utility  services  have  been  cut 
down.  Available  supplies  in  many  locali- 
ties have  been  redistributed  in  order  to  meet 
the  most  urgent  needs.  Other  steps  have 
been  taken  by  States  and  cities,  by  indus- 
tries and  by  suppliers,  to  conserve  the 
dwindling  stocks  of  coal.  These  efforts  have 
stretched  our  national  stockpile,  but  they 
cannot  add  to  it.  Within  a  very  few  days  we 
shall  be  virtually  out  of  soft  coal.  The  dan- 
ger to  the  national  health  and  safety  is  real 
and  immediate.    It  requires  action  at  once. 

The  immediate  reason  for  the  curtailment 
of  bituminous  coal  production  is  a  dispute 
between  most  of  the  mine  operators  and  the 
principal  union  of  mine  workers,  the  United 
Mine  Workers  of  America,  over  the  terms 
and  conditions  of  employment  in  the  mines. 

The  previous  contract  between  the  union 
and  the  operators  expired  June  30,  1949.  In 
subsequent  months,  the  mines  operated  inter- 
mittently, while  negotiations  for  a  new  con- 
tract were  under  way.  But  these  negotia- 
tions failed  to  produce  agreement,  and  the 
miners  went  on  strike  on  February  6,  1950. 

On  January  31,  in  an  effort  to  avert  this 
situation,  I  asked  the  operators  and  the  union 
to  agree  to  continue  production,  in  the 
national  interest,  for  70  days,  while  a  fact- 
finding board  reviewed  the  issues  and  recom- 
mended fair  and  reasonable  terms  for  settle- 
ment of  the  dispute.  While  this  request  was 
accepted  by  the  operators,  it  was  rejected  by 
the  union. 


Thereafter,  when  negotiations  were 
broken  off  and  the  strike  occurred,  I  estab- 
lished a  Board  of  Inquiry  under  the  Labor 
Management  Relations  Act,  1947.  It  was 
this  Board's  duty,  under  the  law,  to  find  the 
facts  and  to  report  them,  but  not  to  make 
recommendations. 

The  Board  reported  to  me  on  February  11. 
It  found  that  during  all  the  months  of  nego- 
tiation, neither  side  had  bargained  freely  and 
effectively  on  the  essential  issues  in  dispute. 
The  Board  also  expressed  a  conviction  which 
deserves  emphasis  today.  The  Board  con- 
cluded that  "The  obligation  entrusted  to  the 
Operators  and  to  the  Union,  as  the  agent  of 
the  employees,  to  serve  in  a  joint  stewardship 
of  these  vital  resources  must  be  met.  The 
health  and  safety  of  the  Nation  demand  this." 

On  the  basis  of  the  Board's  findings,  along 
with  the  other  evidence  available,  the  At- 
torney General  on  February  11,  at  my  direc- 
tion, requested  the  United  States  District 
Court  for  the  District  of  Columbia  to  enjoin 
the  union  from  continuing  the  strike  and  to 
order  both  parties  to  bargain  in  good  faith. 
That  same  day,  the  Court  issued  a  temporary 
restraining  order  to  accomplish  these 
purposes. 

As  a  result,  the  parties  renewed  bargaining 
negotiations  on  February  15.  The  Board  of 
Inquiry  was  reconvened  and  met  repeatedly 
with  the  parties,  in  cooperation  with  the  Di- 
rector of  the  Federal  Mediation  and  Concilia- 
tion Service,  in  an  effort  to  bring  about 
agreement. 

But  while  negotiations  have  continued,  the 
miners  have  not  returned  to  work.  On  Feb- 
ruary 20,  the  Attorney  General  started  pro- 
ceedings against  the  union,  charging  that  it 
had  not  obeyed  the  order  enjoining  the  con- 
tinuance of  the  strike,  and  that  it  was  there- 
fore in  contempt  of  court.  This  action  was 
taken  in  light  of  the  fact  that  the  work  stop- 
page was  still  under  way  nine  days  after 
the  Court's  order.    On  March  2,  the  Court 


188 


Harry  S.  Truman,  ig^o 


Mar.  3    [49] 


found  that  the  union  was  not  in  contempt. 

It  is  evident  that  the  order  of  the  Court 
has  not  brought  forth  production.  The 
mines  are  still  shut  down.  Events  since  the 
issuance  of  the  Court's  order  on  Febru- 
ary II  give  us  no  assurance  that  Court  ac- 
tion under  present  law  can,  in  fact,  end  the 
work  stoppage  in  time  to  avert  exhaustion 
of  our  coal  supplies. 

The  Nation's  welfare  requires  that  soft 
coal  production  be  resumed  at  once,  in  or- 
der to  prevent  human  suffering  and  disas- 
trous economic  dislocation.  Since  the  union 
and  the  operators  have  failed  to  resume  pro- 
duction, and  since  recourse  to  the  Court  has 
so  far  proved  ineffective,  it  is  now  my  plain 
duty  to  propose  further  action.  Therefore, 
I  recommend  that  the  Congress  enact  legis- 
lation authorizing  the  Government  to  take 
over  the  coal  mines  and  operate  them  tem- 
porarily as  a  public  service. 

The  parties  are  continuing  their  negotia- 
tions, and  I  earnesdy  hope  that  they  will 
reach  agreement  before  it  actually  becomes 
necessary  for  the  Government  to  take  posses- 
sion of  the  mines.  But  we  can  wait  no 
longer  to  prepare  ourselves  with  the  neces- 
sary legislative  authority. 

I  am  submitting  at  this  time  a  draft  of 
legislation  to  accomplish  this  purpose.  I 
earnestly  request  that  the  Congress  consider 
this  proposal  and  enact  the  needed  legisla- 
tion as  quickly  as  possible. 

In  requesting  this  legislation,  it  is  my  pur- 
pose and  intention  to  restore  the  produc- 
tion of  badly  needed  coal.  During  the  period 
of  Government  possession  of  the  mines,  the 
owners  should  receive  fair  and  just  compen- 
sation for  the  use  of  their  property,  and  the 
miners  should  receive  fair  and  just  compensa- 
tion for  their  work.  The  proposed  legisla- 
tion would  authorize  the  establishment  of 
impartial  boards  to  make  recommendations 
concerning  fair  and  just  compensation  for  the 
use  of  the  property  of  the  mine  owners  and 


for  the  work  of  the  mine  employees. 

I  am  not  requesting  this  legislation  as  a 
means  of  settling  the  issues  in  dispute  be- 
tween the  operators  and  the  union.  They 
will  have  to  settle  their  differences  through 
their  own  collective  bargaining,  just  as 
though  Government  operation  were  not  in 
effect.  I  do  not  propose  to  substitute  the 
Government's  representatives  for  the  private 
operators  at  the  bargaining  table.  It  will  not 
be  our  purpose  to  establish  wages,  hours,  or 
working  conditions  which  would  bind  either 
the  operators  or  the  miners  upon  resumption 
of  private  operations.  When  the  country  can 
be  assured  of  sufficient  supplies  of  coal,  the 
Government  will  have  no  need  to  continue 
public  operation  and  the  mines  will  be 
promptly  returned  to  private  hands. 

I  have  stressed  these  essential  elements 
in  the  plan  for  Government  operation,  so 
that  there  will  be  no  misunderstanding  of 
the  legislation  I  am  recommending.  The 
draft  bill  which  I  propose  for  consideration  is 
necessarily  quite  general,  so  that  the  Govern- 
ment may  adapt  the  details  of  its  operations 
to  changing  circumstances.  But  while  the 
legislative  language  can  best  be  framed  in 
general  terms,  there  should  be  no  mistaking 
the  contemplated  relationships  of  the  Gov- 
ernment with  the  operators  and  the  miners 
during  the  period  of  public  operation. 

There  are  other  issues  in  this  emergency 
than  the  Nation's  urgent  need  for  coal.  This 
crisis  raises  vital  questions  for  the  future  of 
the  coal  industry. 

We  have  arrived  at  the  present  impasse 
because  both  the  operators  and  the  union 
have  failed,  month  after  month,  to  make  the 
efforts  in  genuine  bargaining  which  could 
result  in  a  mutually  satisfactory  settlement. 
They  have  been  unwilling  or  unable  to  lay 
aside  their  charges  and  counter-charges, 
moderate  their  fixed  positions  and  undertake 
serious  negotiation  in  a  spirit  of  accommo- 
dation and  mutual  understanding. 


189 


[49]    Mar.  3 


Public  Papers  of  the  Presidents 


They  have  been  unwilling  or  unable  to  do 
so  despite  the  country's  desperate  need,  de- 
spite the  growing  distress  of  the  idle  miners 
and  their  families  and  the  economic  losses 
incurred  by  idle  facilities,  despite  the  com- 
petitive advantage  which  their  long  dispute 
is  giving  to  other  fuels. 

Fortunately,  this  dangerous  breakdown  in 
the  normal  course  of  labor-management  re- 
lations does  not  characterize  most  industries 
in  this  country.  On  the  contrary,  collective 
bargaining  has  generally  produced  sustained 
production  and  mutual  benefits,  without 
these  serious  consequences  for  the  public  and 
this  need  for  extreme  governmental  action. 

But  the  coal  industry  has  failed  signally  to 
solve  its  own  problems  in  the  field  of  labor- 
management  relations.  The  current  failure 
is  only  the  latest  of  a  series  which  stretches 
back  over  many  years,  recurring  with  dis- 
heartening regularity.  We  can  only  assume 
that  if  this  industry  continues  as  it  has  been 
going,  we  shall  be  faced  repeatedly  with 
situations  of  this  kind.  We  shall  be  forced 
every  so  often  into  governmental  action  of 
one  kind  or  another — action  which  cannot 
solve  the  underlying  problems  or  remedy 
the  failures  of  the  private  parties,  but  which 
is  necessary  to  shield  the  pubUc  from  their 
consequences. 

These  recurrent  breakdowns  between 
labor  and  management  in  the  coal  industry 
are  only  symptoms  of  profound  and  long- 
standing economic  and  social  difficulties  in 
which  the  industry  has  become  involved. 
We  can  hope  to  work  toward  real  solutions 
of  the  unstable  relations  between  labor  and 
management  in  the  coal  mines,  only  if  we 
come  to  grips  with  the  problems  which  foster 
instability. 

I  further  recommend,  therefore,  that  the 
Congress  establish  a  commission  of  inquiry, 
including  members  from  the  Congress,  the 
Executive  Branch,  and  the  public,  to  make 
a  thorough  study  of  the  coal  industry,  in 


terms  of  economic,  social,  and  national  secu- 
rity objectives.  The  draft  of  legislation 
which  I  am  submitting  at  this  time  does  not 
include  provisions  for  establishing  such  a 
commission.  However,  I  expect  to  submit 
a  draft  of  legislation  for  that  purpose  to  the 
Congress  at  an  early  date. 

Management  in  this  industry  is  confronted 
by  declining  markets,  severe  competition, 
and  the  high  cost  of  efficient,  modern  equip- 
ment. Labor  faces  arduous  work,  a  harsh 
physical  environment,  an  uncertain  work 
year,  and  the  prospect  of  fewer  jobs.  The 
Nation  needs  an  assured  supply  of  coal  at 
all  times,  and  readily  available  reserves  to 
buttress  our  national  security. 

It  is  essential  that  the  commission  examine 
carefully  and  factually  each  one  of  these  con- 
ditions, probing  the  realities  behind  them 
and  taking  stock  of  our  national  needs  and 
resources,  human  and  material.  We  should 
then  be  able  to  determine  what  kinds  of 
actions  and  what  sorts  of  policies  on  the  part 
of  Government,  management,  and  labor, 
will  restore  the  coal  industry  to  economic 
health  and  provide  a  stable  environment  for 
constructive  relationships  between  the  oper- 
ators and  their  employees. 

This  is  the  real  challenge  of  the  present 
situation.  It  is  a  test  of  our  ability  to  find 
a  way  to  achieve  adequate  production  of  a 
raw  material  basic  to  our  national  life,  while 
preserving  the  fundamental  values  of  our 
free  institutions.  Both  our  friends  and  our 
detractors  in  the  rest  of  the  world  are  watch- 
ing to  see  how  our  democratic  society  will 
meet  this  challenge. 

The  coal  industry  is  a  sick  industry.  Tem- 
porary seizure  by  the  Government,  though 
it  may  be  necessary  under  present  circum- 
stances, cannot  produce  a  cure.  I  am  recom- 
mending seizure  authority  because  I  believe 
we  now  have  no  alternative.  But  I  urge  that 
it  be  accompanied  by  a  positive  and  con- 
structive efiFort  to  get  at  the  root  of  the 


190 


Harry  S.  Truman,  ig^o 


Mar.  7    [50] 


trouble.  This  is  in  the  interest  of  the  men 
who  work  the  mines.  It  is  equally  in  the 
interest  of  their  employers.  Above  all,  it 
is  in  the  interest  of  the  American  people. 

I  urge  the  Congress,  therefore,  to  act 
immediately  on  legislation  to  authorize  the 
Government  to  take  possession  of  and  oper- 
ate the  mines,  and  then  to  turn  its  atten- 


tion to  legislation  looking  toward  a  solution 
of  the  basic  difficulties  of  the  coal  industry. 

Harry  S.  Truman 

note:  The  draft  bill,  transmitted  with  the  Presi- 
dent's message,  is  printed  in  House  Document  492 
(8ist  Cong.,  2d  sess.). 
See  also  Items  27,  35,  and  50. 


50    Letter  to  the  President  of  the  Senate  and  to  the  Speaker  of 
the  House  Transmitting  Bill  for  the  Establishment  of  a 
Commission  on  the  Coal  Industry.    March  7,  1950 


Dear  Mr, ; 

In  my  message  of  March  3,  1950,  to  the 
Congress,  I  urged  the  Congress  to  act  im- 
mediately on  legislation  to  authorize  the 
Government  to  take  possession  of  and  oper- 
ate the  coal  mines.  I  submitted  with  that 
message  a  draft  of  a  bill  appropriate  for 
carrying  out  that  recommendation. 

Since  my  message  to  Congress,  the  repre- 
sentatives of  the  miners  and  the  representa- 
tives of  the  operators  have  negotiated  a  new 
contract  and  the  miners  are  returning  to 
work.  The  emergency  situation  which  was 
the  basis  of  my  request  for  seizure  authority 
no  longer  exists,  therefore,  and,  accordingly, 
it  is  not  necessary  for  the  Congress  to  give 
further  consideration  to  such  legislation  at 
this   time. 

I  also  recommended  in  my  message  of 
March  3  that  the  Congress  establish  a  com- 
mission, including  members  from  the  Con- 
gress, the  Executive  Branch,  and  the  pub- 
lic, to  make  a  thorough  study  of  the  coal 
industry  in  terms  of  national  economic,  so- 
cial, and  security  objectives,  and  to  recom- 
mend positive  and  constructive  solutions  for 
the  basic  problems  of  that  industry.  I  stated 
that  I  expected  to  submit  a  draft  of  legisla- 
tion for  that  purpose  to  the  Congress  at  an 
early  date. 


Pursuant  to  this  statement  in  my  message 
of  March  3,  I  attach  for  the  consideration  of 
the  Senate  (House  of  Representatives)  a 
draft  of  legislation  to  establish  a  commission 
on  the  coal  industry.  The  end  of  the  coal 
strike  has  in  no  way  diminished  the  need 
for  a  long-range  study  of  the  coal  industry 
with  the  view  of  finding  and  putting  into 
effect  the  best  solutions  of  its  problems  from 
the  standpoint  of  the  miners,  the  operators, 
and,  above  all,  the  national  interest.  I, 
therefore,  hope  that  the  Congress  will  enact 
legislation  of  this  character  as  soon  as 
possible. 

Sincerely  yours, 

Harry  S.  Truman 

note:  This  is  the  text  of  identical  letters  addressed 
to  the  Honorable  Alben  W.  Barkley,  President  of  the 
Senate,  and  to  the  Honorable  Sam  Rayburn,  Speaker 
of  the  House  of  Representatives. 

The  draft  bill  proposed  a  9-member  commission 
to  be  made  up  of  two  Senators,  two  Representatives, 
and  five  members  to  be  named  by  the  President.  The 
proposal  was  studied  by  the  Senate  Committee  on 
Interior  and  Insular  AfFairs,  but  it  was  not  con- 
sidered  by  the  House. 

The  8 -month  controversy  in  the  coal  industry 
ended  on  March  5  with  the  signing  of  a  new  con- 
tract between  the  mine  operators  and  the  miners, 
represented  by  the  United  Mine  Workers  of  America. 
The  new  agreement  provided  that  the  miners  re- 
ceive 70  cents  more  a  day,  and  increased  by  10 
cents  a  ton  the  operators'  payments  to  the  miners' 
welfare  fund. 

See  also  Items  27,  35,  and  49. 


191 


[51]    Mar.  9 


Public  Papers  of  the  Presidents 


51     Statement  by  the  President  on  the  Record  of  the  Home 
Owners'  Loan  Corporation.    March  9,  1950 


THIS  OCCASION  marks  another  step  in 
the  successful  completion  of  the  work  of  the 
Home  Owners'  Loan  Corporation.  It  has 
already  paid  off  the  last  of  its  $3,500  million 
of  bonded  indebtedness.  It  is  now  making 
its  first  repayment,  of  $26  million,  to  the 
United  States  Treasury  on  the  $200  million 
advanced  by  the  Government  in  1933  as 
capital  stock. 

Today  the  HOLC  is  over  95  percent  liqui- 
dated. Through  earnings  on  its  loans,  it  has 
paid  its  own  administrative  expenses,  and 
offset  the  real  estate  losses  which  it  had  to 
meet.  It  is  now  expected  that  when  the 
HOLC  is  fully  liquidated,  the  Treasury  will 
have  been  repaid  its  capital  advance  in  full, 
plus  a  surplus  of  several  million  dollars. 

The  Home  Owners'  Loan  Act  was  one  of 
the  emergency  measures  passed  during  the 
first  days  of  the  Democratic  administration 
in  1933.  Foreclosures  on  city  homes  were 
then  running  at  the  rate  of  1,000  every  day. 

In  3  years  the  HOLC  refunded  the  over- 
due mortgages  of  more  than  i  million  fami- 
lies with  long-term  loans  at  lower  interest 
rates.  These  loans,  with  later  advances, 
amounted  to  nearly  %'^Vi  billion. 

Not  only  did  these  funds  save  families 
from  foreclosure.  At  the  same  time,  they 
enabled  banks,  insurance  companies,  savings 
and  loan  associations  and  other  real  estate 
investors  to  exchange  defaulted  mortgages 
for  $2%  billion  in  cash  and  Government 
bonds.  This  new  life  blood  saved  many 
hundreds  of  financial  institutions — permit- 
ting them  to  pay  off  their  depositors  or  in- 
vestors as  necessary  and  to  remain  in  busi- 
ness. 

Furthermore,  the  HOLC  program  aided 
city  and  town  governments  in  meeting  their 
payrolls  and  keeping  up  their  essential  serv- 
ices.   As  payment  for  the  overdue  taxes  of 


HOLC  borrowers,  local  governments  re- 
ceived nearly  half  a  billion  dollars  in  less 
than  3  years. 

In  all  these  ways  the  HOLC  program  was 
an  outstanding  example  of  the  intelligent 
investment  of  public  funds  to  meet  urgent 
depression  needs — helping  to  save  homes, 
businesses,  and  local  governments  from  the 
disastrous  effects  of  widespread  unemploy- 
ment and  loss  of  income. 

The  families  whose  homes  were  saved 
were  encouraged  to  hold  on  to  their  prop- 
erties and  repay  their  loans.  In  the  depres- 
sion years,  they  scrimped  and  sacrificed  to 
meet  their  monthly  payments;  in  later  years, 
when  times  were  better,  they  often  made  pay- 
ments in  advance — ^many  paying  off  their 
debts  in  full  far  ahead  of  schedule. 

When  the  HOLC  was  started  some  people 
expressed  the  fear  that  the  experiment  of 
direct  Government  lending  to  homeowners 
in  default  on  their  mortgages  and  taxes 
might  cost  the  Treasury  huge  losses.  But 
those  who  supported  the  program  had  faith 
in  the  future.  They  knew  that  through 
vigorous  public  and  private  action  the  down- 
ward spiral  of  depression  could  be  reversed, 
and  that  these  loans  would  be  sound  assets 
which  would  be  repaid  in  full.  That  is  what 
happened. 

The  record  of  the  Home  Owners'  Loan 
Corporation  illustrates  a  lesson  that  has  been 
proved  time  and  time  again  in  recent  years. 
It  is  that  by  wise  use  of  its  powers,  the  Gov- 
ernment can  engage  in  broad  programs  of  so- 
cial benefit — ^and  conduct  them  efficiently 
and  without  waste  of  public  funds. 

The  Home  Owners'  Loan  Corporation  was 
successful  in  terms  of  dollars  and  cents. 
But,  much  more  important,  it  was  successful 
in  terms  of  human  values — ^in  helping  hun- 
dreds of  thousands  of  families  to  maintain 


192 


Harry  S.  Truman,  ig^o 


Mar.  9    [52] 


themselves  as  self-reliant  homeowners,  se- 
cure in  their  hard-earned  property,  and  free 
of  the  threat  of  eviction  through  no  fault  of 
their  ov^n. 


We  should  all  be  proud  of  this  demonstra- 
tion of  bold  and  constructive  Government  ac- 
tion for  the  good  of  the  whole  country. 


52    The  President's  News  Conference  of 
March  9,.  1950 


THE  PRESIDENT.  I  have  no  special  announce- 
ments to  make  this  afternoon.  I  will  try  to 
answer  questions. 

[i.]  Q.  Mr.  President,  may  we  take  the 
appointment  of  Martin  Hutchinson  to  the 
Federal  Trade  Commission  as  an  indication 
of  a  trend;  that  is,  of  more  top-level  appoint- 
ments among  southern  Truman  men? 

THE  PRESIDENT.  Why,  I  don't  know 
whether  to  take  it  as  a  trend  or  not. 
I  expect  to  appoint  people  on  whose  quali- 
ties and  qualifications  I  can  depend. 

Q.  Can  you  find  some  more  down  South? 

THE  PRESIDENT.  I  bcUeve  I  Can.  I  am  very 
sure  I  can.     [Laughter] 

[2.]  Q.  Mr.  President,  Ambassador 
Bay,  Ambassador  to  Norway,  was  in  to 
see  you  today.  Is  he  going  to  be  the  new 
Chairman  of  the  National  Security  Re- 
sources Board? 

THE  PRESIDENT.  No.  Hc  is  Ambassador 
to  Norway,  and  he  is  going  to  stay  Ambas- 
sador to  Norway. 

Q.  Mr.  President,  what  is  the  progress  on 
the  National  Security  Resources  Board? 

THE  PRESIDENT.  I  bcg  your  pardon? 

Q.  What  is  the  progress  on  the  National 
Security  Resources  Board? 

THE  PRESIDENT.  One  of  these  days  I  will 
make  an  announcement  to  you,  and  you  will 
know  all  about  it. 

[3.]  Q.  Mr.  President,  when  you  are  out 
West,  are  you  going  to  do  any  campaign- 
ing in  California  for  Senator  Downey  or  his 
rival? 


THE  PRESIDENT.  I  have  no  intention  of  go- 
ing to  California. 

Q.  Mr.  President,  on  the  Western  trip, 
Secretary  Chapman  said  this  morning  that 
he  expected  you  to  go  out  to  Grand  Coulee, 
and  possibly  also  to  the  dedication  of  a  dam 
in  Wyoming? 

THE  PRESIDENT.  That  trip  has  been  only  in 
the  discussion  stage.  We  hope  to  get  it  ar- 
ranged for  the  first  part  of  May,  if  that  is 
possible.  As  soon  as  definite  arrangements 
are  made,  why,  I  will  announce  it  to  you 
so  you  can  have  plenty  of  time  to  pack  your 
grips. 

Q.  Is  it  your  hope  to  take  in  the  Chicago 
meeting  also  on  the  same  trip? 

THE  PRESIDENT.  There  has  been  some  talk 
on  that  subject. 

Q.  Is  it  definite 

THE  PRESIDENT.  Nothing  has  been  defi- 
nitely arranged. 

Q.  Is  it  definite  yet,  Mr.  President,  on  the 
Chicago  stop? 

THE  PRESIDENT.  No.  All  this  is  tentative. 
As  soon  as  we  have  the  thing  sewed  up,  why, 
I  will  announce  it  to  you  in  a  form  that  you 
will  understand  every  word  of  it,  so  that  you 
will  have  plenty  of  time  to  get  ready. 

Q.  Mr.  President,  just  to  clarify  my  think- 
ing on  that — [laughter] — when  you  said 
that  you  are  not  going  to  California,  does 
that  rule  out  the  November  campaign  in 
California? 

THE  PRESIDENT.  I  havc  no  intention  of 
going  to  California. 


41-355—65- 


-16 


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Public  Papers  of  the  Presidents 


Q.  You  don't  rule  out  the  November  cam- 
paign? 

THE  PRESIDENT.  No,  not  neccssarily. 

[4.]  Q.  Mr.  President,  there  is  to  be  a 
meeting  of  the  Inter- American  Economic  and 
Social  Council  here  March  20,  apparently 
with  general  representation  from  Latin 
America  and  a  very  active  interest  in  the 
point  4  program,  among  other  things.  Has 
this  conference  required  your  official  atten- 
tion, or  do  you  wish  to  make  any  observa- 
tions about  it? 

THE  PRESIDENT.  No.     No,  I  do  nOt. 

Q.  Any  chance  of  your  speaking  at  that 
meeting,  sir? 

THE  PRESIDENT.  I  hardly  think  so.  If  it  is,  it 
will  be  a  long-distance  speech.     [Laughterl 

[5.]  Q.  Mr.  President,  would  you  care  to 
comment  on  the  suggestion  of  Governor 
Luis  Munoz  Marin,  to  permit  the  people  of 
Puerto  Rico  to  adopt  their  own  constitution? 

THE  PRESIDENT.  I  have  no  comment  on  that. 

[6.]  Q.  Mr.  President,  any  new  nomina- 
tions in  mind  for  the  Atomic  Energy  Com- 
mission? 

THE  PRESIDENT.  No.  If  I  havc  them,  I  will 
announce  them  to  you  in  the  beginning. 

Q.  There  is  a  report  that  there  is  no  inten- 
tion of  filling  the  full  membership.  Is  that — 
anything  to  that? 

THE  PRESIDENT.  I  haveu't  heard  it.  But 
you  can  hear  anything — ^you  can  hear  all 
sorts  of  rumors  about  anything  you  want  to 
start.  This  is  the  best  rumor  town  in  the 
world.  But  I  hadn't  heard  that  one.  That's 
a  new  one. 

Q.  What  do  you  think  of  Senator  Ty- 
ding's  idea  for  one  military  but  not  more 
than  two  military  men  in  regular  service  on 
that  Commission? 

THE  PRESIDENT.  I  think  that  was  setded  by 
the  79th  Congress,  and  then,  you  know,  it 
was  somewhat  balled  up  by  the  8oth  Con- 
gress; but  that  ruling  of  the  79th  was  my 


recommendation  and  still  stands — civilian 
control  of  atomic  energy. 

[7.]  Q.  Mr.  President,  recently  quite  a 
good  many  European  leaders  expressed 
agreement  with  the  idea  of  integration  and 
unity  of  Europe.  I  wonder  if  you  had  read 
those  statements,  and  whether  you  would 
comment 

THE  PRESIDENT.  Yes,  I  havc,  and  I  am  very 
much  pleased  with  the  attitude  of  the  Euro- 
pean correspondents  and  editors  who  have 
been  writing  those  articles.  I  think  they  are 
on  the  right  track. 

[8.]  Q.  Mr.  President,  has  Congressman 
Sabath  sold  you  on  the  idea  of  the  Gossett- 
Lodge  amendment? 

THE  PRESIDENT.  I  didn't  Understand  the 
question. 

Q.  Congressman  Sabath  is  opposed  to  the 
idea  of  the  Gossett-Lodge  amendment, 
changing  the  method  of  election  of  a 
President?  ^ 

THE  PRESIDENT.  Yes,  I  think  he  is  opposed 
to  it,  but  he  told  me  the  other  day  he  was 
going  to  get  a  rule  and  let  the  House  vote  on 
it,  which  I  hope  he  will  do. 

[9.]  Q.  Mr.  President,  what  do  you  think 
about  the  House  action  in  approving  state- 
hood for  Alaska  and  Hawaii? 

THE  PRESIDENT.  I  recommeuded  it  to  them 
three  different  times. 

Q.  You  are  still  for  it? 

THE  PRESIDENT.  Why  Certainly!  Can't 
change  the  Message  on  the  State  of  the 
Union  that   quickly.     [Laughter] 

Q.  Well,  one  of  my  editors  wanted  me  to 
say  it  over  again.     [More  laughter] 

THE  PRESIDENT.  That's  all  right — that's  all 
right. 

[10.]  Q.  Mr.  President,  the  House  Judi- 
ciary Committee  delayed  a  vote  on  the  civil 
rights  bill.  I  wonder  if  you  plan  to  ask 
the  chairman  to  bring  that  out? 

^  See  Item  29  [18]. 


194 


Harry  S.  Truman,  ig^o 


Mar.  13    [53] 


THE  PRESIDENT.  I  havc  been  urging  that 
that  be  brought  out  for — ^let  me  see — it  has 
been  about  5  years  now,  hasn't  it?  I  am  still 
urging  it. 

[11.]  Q.  Mr.  President,  there  is  a  dis- 
pute in  the  House  Labor  Committee  on 
Federal  aid  to  education.  There  are  two 
groups  that  seem  to  be  for  the  general  idea, 
but  are  conflicting  in  the  nature  of  the  bill. 
One  of  them 

THE  PRESIDENT.  I  Can't  Settle  details  and 
arguments 

Q.  I  was  going  to  ask  whether  you  are  for 
the  Senate  bill  ? 

THE  PRESIDENT.  1  Can't  Settle  details 

and  arguments  between  legislators  as  to  how 
a  bill  is  to  be  worded.  I  have  expressed  my 
opinion  time  and  again  on  aid  to  educa- 
tion, and  that  opinion  still  stands  as  it  was  in 
the  message  each  time. 

[12.]  Q.  Have  you  any  observations  on 
Senator  McCarthy's  charges  ? 

THE  PRESIDENT.  Well,  uo,  I  have  no  ob- 
servations to  make  on  it.  I  think  the  Sen- 
ate committee  is  handling  the  situation  very 
well. 

[13.]  Q.  Mr.  President,  has  the  chair- 
man of  the  Educational  Labor  Committee 
in  the  House  assured  you,  like  Mr.  Sabath, 
that  he  would  get  the  bill  out? 


THE  PRESIDENT.  He  has  been  in  touch 
with  me  that  he  is  sure  to  get  the  bill  out  ever 
since  the  Senate  bill  went  over  to  the  House. 
I  haven't  had  a  recent  conversation  with 
him  on  the  subject  individually. 

[14.]  Q.  Mr.  President,  do  you  have 
any  observations  on  the  British  elections,  now 
that  it  has 

THE  PRESIDENT.  No,  I  haven't.  That  is 
the  business  of  the  British.  I  have  no  com- 
ment to  make  on  their  internal  private  af- 
fairs. 

[15.]  Q.  Mr.  President,  there  were  re- 
ports a  year  or  so  ago,  after  a  certain  Navy 
ship  went  to  Cuba,  of  various  people  aboard 
being  seasick.  Are  any  precautions  being 
taken  for  the  cruise  next  Sunday? 

THE  PRESIDENT.  The  "Doc"  Suggested  a 
new  medicine  which  he  said  is  very  good, 
so  it  will  be  available. 

Q.  Is  it  liquid?     [Laughter] 

THE  PRESIDENT.  Well,  it's  a  kind  of  tablet, 
about  as  big  as  your  thumbnail.  That  could 
be  followed  by  certain  liquid  refreshment. 
[Laughter] 

Reporter:  Thank  you,  Mr.  President. 

THE  PRESIDENT.  You're  entirely  welcome. 
note:  President  Truman's  two  hundred  and  twen- 
tieth news  conference  was  held  in  his  office  at  the 
White  House  at  4  p.m.  on  Thursday,  March  9,  1950. 


53     Special  Message  to  the  Congress  Summarizing  the  New 
Reorganization  Plans.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  am  today  transmitting  to  the  Congress 
21  plans  for  reorganization  of  agencies  of  the 
Executive  Branch.  These  plans  have  been 
prepared  under  the  authority  of  the  Reor- 
ganization Act  of  1949.  Each  is  accompa- 
nied by  the  message  required  in  that  Act. 

Our  ability  to  make  such  comprehensive 
recommendations  is  due  in  large  part  to  the 
outstanding  work  of  the  Commission  on 


Organization  of  the  Executive  Branch  of  the 
Government.  The  plans  which  I  am  trans- 
mitting are  all  designed  either  to  put  into 
effect  specific  recommendations  of  the  Com- 
mission or  to  apply  principles  set  forth  by 
the  Commission  in  its  reports. 

When  these  plans  become  effective,  we 
shall  have  acted  on  almost  half  the  proposals 
made  by  the  Commission  on  Organization. 
I  expect  to  transmit  additional  plans  for 


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[53]    Mar.  13 


Public  Papers  of  the  Presidents 


putting  into  effect  other  recommendations 
of  the  Commission  later  in  the  present  ses- 
sion of  Congress. 

The  21  plans  I  am  transmitting  today  are 
designed  to  accomplish  the  following  pur- 
poses: 

Plans  1-6  transfer  to  the  heads  of  six  de- 
partments the  functions  and  powers  now 
conferred  by  law  on  subordinate  officials. 
The  six  departments  affected  are  Treasury, 
Justice,  Interior,  Agriculture,  Commerce, 
and  Labor. 

Plans  7-13  fix  responsibility  for  the  day- 
to-day  administration  of  seven  regulatory 
boards  and  commissions  in  the  chairmen  of 
these  bodies  rather  than  in  the  members 
collectively.  The  agencies  affected  are  the 
Interstate  Commerce  Commission,  Federal 
Trade  Commission,  Federal  Power  Commis- 
sion, Securities  and  Exchange  Commission, 
Federal  Communications  Commission,  Na- 
tional Labor  Relations  Board,  and  Civil 
Aeronautics  Board. 

Plans  14  and  19  transfer  two  functions  to 
the  Department  of  Labor  from  other  Gov- 
ernment agencies. 

Plans  15-18  and  20  transfer  certain  func- 
tions to  and  from  the  General  Services  Ad- 
ministration in  order  to  round  out  the 
organizational  pattern  of  this  agency,  which 
was  created  last  year. 

Plan  21  transfers  the  functions  of  the 
Maritime  Commission  to  the  Department  of 
Commerce,  where  they  are  reconstituted  in 
a  Federal  Maritime  Board  and  a  Maritime 
Administrator. 

The  first  13  plans  all  have  the  same  ob- 
jective— to  establish  clear  and  direct  lines  of 
authority  and  responsibility  for  the  manage- 
ment of  the  Executive  Branch.  The  heads 
of  departments  and  the  Chairmen  of  regu- 
latory bodies  will  be  made  clearly  respon- 
sible for  the  effectiveness  and  economy  of 
Governmental  administration  and  will  be 
given  corresponding  authority,  so  that  the 


public,  the  Congress,  and  the  President  may 
hold  them  accountable  for  results  in  terms 
both  of  accomplishments  and  of  cost. 

The  Commission  on  Organization  placed 
great  stress  upon  the  establishment  of  clear 
lines  of  authority  and  responsibility.  This 
was,  in  fact,  the  very  first  of  its  recommenda- 
tions. The  opening  three  paragraphs  on  the 
first  page  of  its  initial  report  read  as  follows: 

"In  this  part  of  its  report,  the  Commission 
on  Organization  of  the  Executive  Branch  of 
the  Government  deals  with  the  essentials  of 
effective  organization  of  the  executive 
branch.  Without  these  essentials,  all  other 
steps  are  doomed  to  failure. 

"The  President,  and  under  him  his  chief 
lieutenants,  the  department  heads,  must  be 
held  responsible  and  accountable  to  the 
people  and  the  Congress  for  the  conduct  of 
the  executive  branch. 

"Responsibility  and  accountability  are  im- 
possible without  authority — the  power  to 
direct.  The  exercise  of  authority  is  impos- 
sible without  a  clear  line  of  command  from 
the  top  to  the  bottom,  and  a  return  line  of 
responsibility  and  accountability  from  the 
bottom  to  the  top." 

Again,  in  its  report  on  regulatory  agencies, 
the  Commission  made  the  centering  of  ad- 
ministrative responsibility  its  first  recom- 
mendation, writing  as  follows: 

"Administration  by  a  plural  executive  is 
universally  regarded  as  inefficient.  This  has 
proved  to  be  true  in  connection  with  these 
commissions.  .  .  .  We  recommend  that  all 
administrative  responsibility  be  vested  in  the 
chairman  of  the  commission." 

Through  these  plans,  authority  placed  by 
law  in  subordinate  officials  is  transferred  to 
the  heads  of  the  six  departments.  In  the  case 
of  the  State  and  Post  Office  Departments, 
comparable  authority  was  placed  in  the  de- 
partment heads  by  legislation  and  reorgani- 
zation action  effected  last  year. 

Another  feature  of  the  departmental  plans 


196 


Harry  S.  Truman,  ig^o 


Mar.  13    [53] 


is  the  establishment  of  Administrative  Assist- 
ant Secretaries  in  each  of  these  six  depart- 
ments. These  positions  are  established  in 
order  to  provide  top-level  assistance  to  each 
department  head  in  the  heavy  managerial 
responsibilities  of  his  office.  They  are  set  up 
within  the  classified  civil  service  for  the  pur- 
poses both  of  achieving  continuity  in  office 
and  of  obtaining  persons  with  the  greatest 
experience  in  the  specialized  functions  of 
management. 

In  regard  to  the  regulatory  agencies,  the 
plans  distinguish  between  two  groups  of 
functions  necessary  to  the  conduct  of  these 
agencies.  One  group  includes  the  substantive 
aspects  of  regulation — that  is,  the  determina- 
tion of  policies,  the  formulation  and  issu- 
ance of  rules,  and  the  adjudication  of  cases. 
All  these  functions  are  left  in  the  board  or 
commission  as  a  whole.  The  other  group  of 
functions  comprises  the  day-to-day  direction 
and  internal  administration  of  the  complex 
stafi  organizations  which  the  commissions 
require.  These  responsibilities  are  trans- 
ferred to  the  chairmen  of  the  agencies,  to  be 
discharged  in  accordance  with  policies  which 
the  commissions  may  establish.  The  chair- 
man is  to  be  designated  in  each  agency  by 
the  President  from  among  the  Commission 
members. 

In  plan  No.  12,  unified  responsibility  is 
once  more  established  in  the  National  Labor 
Relations  Board  by  transferring  to  the  Board 
and  its  Chairman  the  functions  of  the  Gen- 
eral Counsel  and  by  abolishing  the  statutory 
office  of  the  General  Counsel.  This  plan  will 
bring  to  an  end  the  confusion  which  has 
resulted  from  divided  responsibility. 

The  changes  embodied  in  the  first  13 
plans  are  fundamental  to  the  sustained  drive 
we  have  undertaken  to  increase  effective 
and  economical  management  of  the  Execu- 
tive Branch.  Only  by  placing  in  the  heads  of 
departments  and  agencies  the  authority  nec- 
essary to  direct  and  supervise  the  machinery 


of  the  Executive  Branch  can  the  maximum 
benefit  be  attained  from  the  reorganization 
and  reassignment  of  the  functions  which 
make  up  that  branch. 

The  8  remaining  plans  propose  reassign- 
ment of  certain  functions.  They  will  take  us 
further  toward  the  goal  of  grouping  the  pro- 
grams of  the  Government  in  the  smallest 
practicable  number  of  departments  and  agen- 
cies organized  according  to  major  purpose. 

Transfer  of  the  functions  of  the  Maritime 
Commission  to  the  Department  of  Com- 
merce through  plan  No.  21  will  mark  a  long 
step  forward  in  the  integration  of  the  many 
Governmental  programs  affecting  transpor- 
tation. This  step,  again,  is  in  accord  with 
the  recommendations  of  the  Commission  on 
Organization  of  the  Executive  Branch. 

For  more  than  a  decade,  the  Department 
has  been  in  the  process  of  becoming  the  ma- 
jor transportation  agency  of  the  Government. 
The  establishment  of  the  Civil  Aeronautics 
Administration  within  the  Department  was 
the  first  major  move  in  this  direction.  The 
transfer  of  the  Weather  Bureau  to  the  De- 
partment was  based  in  large  part  on  that  Bu- 
reau's importance  to  transportation.  One 
of  the  reorganization  plans  which  I  trans- 
mitted to  the  Congress  last  year  transferred 
the  Bureau  of  Public  Roads  to  the  Depart- 
ment. Now,  with  the  addition  of  the  func- 
tions of  the  Maritime  Commission,  the  De- 
partment will  have  jurisdiction  over  the 
major  portion  of  the  operating  aspects  of  the 
programs  of  the  Government  relating  to  air, 
highway,  and  water  transportation,  as  well  as 
over  the  development  and  coordination  of 
policies  affecting  the  Nation's  transportation 
system  as  a  whole. 

Plan  No.  21  estabHshes  in  the  Department 
of  Commerce  a  three-man  Federal  Maritime 
Board  and  a  Maritime  Administration  under 
a  Maritime  Administrator.  The  award  of 
subsidies  and  all  regulatory  functions  are 
transferred  from  the  present  Maritime  Com- 


197 


[53]    Mar.  13 


Public  Papers  of  the  Presidents 


mission  to  the  new  Board.  The  remaining 
functions  of  the  Maritime  Commission,  in- 
volving ship  construction  and  other  admin- 
istrative operations,  are  transferred  to  the 
Department  of  Commerce  for  execution 
through  the  Maritime  Administration. 

The  plan  also  provides  for  appointment  of 
an  Under  Secretary  of  Commerce  for  Trans- 
portation, vi^ho  vv^ill  assist  the  Secretary  in 
the  direction  and  coordination  of  the  trans- 
portation activities  now  centered  in  the  De- 
partment. 

In  plans  Nos.  14  and  19  the  Department 
of  Labor  is  given  two  new  functions — the 
Bureau  of  Employees'  Compensation,  trans- 
ferred from  the  Federal  Security  Agency; 
and  the  responsibility  for  coordination  of  the 
enforcement  of  wages  and  hours  legislation 
affecting  Federal  or  Federally-financed  con- 
tracts. These  two  steps  will  further  strength- 
en the  Department  of  Labor  as  the  center 
of  responsibility  for  Governmental  pro- 
grams which  protect  the  welfare  of  em- 
ployees. This  is  the  same  essential  purpose 
that  underlay  the  transfer  last  year  of  the 
Bureau  of  Employment  Security  to  the  De- 
partment. 

The  remaining  five  plans  represent  a  logi- 
cal evolution  of  the  responsibilities  of  the 
new  General  Services  Administration.  Two 
of  these  plans  (18  and  20)  transfer  addi- 
tional service  responsibilities  to  the  General 
Services  Administration;  and  the  other 
three  (15-17)  remove  from  it  various  in- 
appropriate functions  it  received  from  the 
recendy  abolished  Federal  Works  Agency. 

In  plan  No.  18  the  Administrator  of  Gen- 
eral Services  is  given  expanded  authority 
over  the  acquisition  and  control  of  Federal 
office  space,  particularly  outside  the  Dis- 
trict of  Columbia.  He  is  also  assigned 
the  responsibility  by  plan  No.  20  for  the 
preservation  and  publication  of  certain  pub- 
lic documents,  such  as  laws  and  territorial 
papers,  now  handled  by  the  Department  of 


State,  but  unrelated  to  the  foreign  affairs 
mission  of  the  Department. 

Plans  15-17  transfer  from  the  Administra- 
tion six  programs  relating  to  pubUc  works, 
community  facilities  and  school  aid.  Alaska 
and  Virgin  Islands  public  works  functions 
are  transferred  by  plan  No.  15  to  the  Depart- 
ment of  the  Interior;  assistance  to  school  dis- 
tricts overburdened  by  Federal  activities  and 
certain  water  pollution  control  functions  are 
assigned  by  plan  No.  16  to  the  Federal  Secu- 
rity Agency;  and  advance  planning  of  non- 
Federal  public  works  and  the  management 
and  disposal  of  war  public  works  are  trans- 
ferred to  the  Housing  and  Home  Finance 
Agency  by  plan  No.  17. 

When  considered  in  conjunction  with  the 
reorganization  plans  and  legislation  which 
were  made  effective  in  1949,  these  21  plans 
bring  near  to  realization  certain  major  goals 
that  have  been  set  forth  by  the  Commission 
on  Organization.  These  are  the  same  goals 
toward  which  the  Congress  was  aiming 
when  it  enacted  the  Reorganization  Act  of 
1949,  and  toward  which  I  have  been  working 
in  the  exercise  of  my  duties  as  the  manager 
responsible  for  the  efficiency  and  economy  of 
the  Executive  Branch. 

The  first  of  these  goals  is  to  improve  over- 
all management  of  the  Executive  Branch. 
During  1949  the  agencies  comprising  the 
Executive  Office  of  the  President  were  re- 
grouped, the  internal  organization  of  the 
Civil  Service  Commission  was  strengthened 
to  equip  it  for  leadership  in  personnel  ad- 
ministration, and  the  housekeeping  func- 
tions of  the  Government  as  a  whole  were 
consolidated  in  a  new  General  Services  Ad- 
ministration. Today's  plans  provide  fur- 
ther improvement  in  the  organization  of  the 
last  of  these  agencies. 

The  second  objective  is  to  improve  the 
internal  management  of  individual  depart- 
ments and  agencies.  Congressional  and  ad- 
ministrative action  last  year  strengthened 


198 


Harry  S.  Truman,  i^^o 


Mar.  13    [54] 


the  structure  of  three  departments — State, 
Defense,  and  Post  Office — and  clarified  the 
management  authority  of  the  Department 
heads.  Today's  plans  lay  comparable  foun- 
dations for  improving  the  internal  manage- 
ment of  the  remaining  six  departments  and 
of  seven  regulatory  agencies. 

The  third  general  goal  is  to  reduce  the 
number  of  Governmental  agencies  and  to 
group  functions  according  to  the  primary 
purposes  of  these  agencies.  Progress  v^^as 
made  last  year  in  the  grouping  of  functions 
relating  to  transportation  and  to  labor.    To- 


day's plans  deal  again  with  those  two  areas, 
as  well  as  eifiFecting  other  significant  shifts. 

The  reorganization  and  modernization  of 
the  Government  may  never  be  called  com- 
plete. I  am  confident,  however,  that  these 
plans  will  take  us  well  along  the  road  toward 
more  effective,  economical  and  responsible 
Government. 

Harry  S.  Truman 

note:   For   the   President's   messages   to   Congress 
transmitting  Reorganization  Plans  1-2 1,  see  Items 

54-76. 


54    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plans  I  Through  13  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  am  transmitting  today  Reorganization 
Plans  Nos.  i  to  13  o£  1950,  designed  to 
strengthen  the  management  of  six  executive 
departments  and  seven  regulatory  commis- 
sions. These  plans  propose  a  major  clari- 
fication of  the  lines  of  responsibility  and  au- 
thority for  the  management  of  the  Executive 
Branch.  They  would  put  into  effect  the 
principal  remaining  recommendations  of  the 
Commission  on  Organization  of  the  Execu- 
tive Branch  of  the  Government  affecting  the 
location  of  management  responsibility  with- 
in the  departments  and  agencies. 

A  principal  finding  of  the  Commission 
on  Organization  was  that  clean-cut  lines  of 
authority  do  not  exist  in  the  Executive 
Branch.  The  Commission  stated  that  "the 
first  and  essential  step  in  the  search  for  ef- 
ficiency and  economy  in  the  Executive 
Branch  of  the  Federal  Government"  is  to 
correct  the  present  diffusion  of  authority  and 
confusion  of  responsibility.  The  Commis- 
sion warned  that  without  this  action  "all 
other  steps  to  improve  organization  and 
management  are  doomed  to  failure." 
Reorganization  Plans  Nos.  i  to  13  pro- 


pose a  bold  approach  to  the  problem  of  de- 
lineating responsibility  and  authority  for  the 
management  of  the  Executive  Branch. 
Clearer  lines  of  responsibility  and  author- 
ity will  strengthen  our  constitutional  system 
and  will  also  help  to  establish  accountability 
for  performance  in  office — a  basic  premise  of 
democratic  government.  I  urge  the  Con- 
gress to  add  its  approval  to  my  acceptance 
of  these  recommendations  of  the  Commis- 
sion on  Organization. 

Reorganization  Plans  Nos,  i  to  6,  Relating 
to  Six  Executive  Departments, 

Reorganization  Plans  Nos.  i  to  6,  inclu- 
sive, relate  to  the  Departments  of  the  Treas- 
ury, Justice,  the  Interior,  Agriculture,  Com- 
merce, and  Labor.  With  certain  exceptions, 
these  plans  transfer  to  the  respective  depart- 
ment heads  the  functions  of  other  officers  and 
agencies  of  the  departments.  They  permit 
each  department  head  to  authorize  the  func- 
tions vested  in  him  to  be  performed  by  any 
officer,  agency,  or  employee  of  the  depart- 
ment. In  addition.  Administrative  Assistant 
Secretaries  are  provided  for  each  of  the  six 
departments,  and  additional  Assistant  Secre- 


199 


[54]    Mar.  13 


Public  Papers  of  the  Presidents 


taries  are  authorized  for  the  Department  of 
the  Interior  and  the  Department  of  Agri- 
culture. 

In  its  introduction  to  its  first  report,  the 
Commission  on  Organization  stated  two  "es- 
sentials of  effective  organization."  These 
are: 

"The  President,  and  under  him  his  chief 
lieutenants,  the  department  heads,  must  be 
held  responsible  and  accountable  to  the  peo- 
ple and  the  Congress  for  the  conduct  of  the 
executive  branch,"  and 

"The  wise  exercise  of  authority  is  impos- 
sible without  the  aids  which  staff  institu- 
tions can  provide  to  assemble  facts  and  rec- 
ommendations upon  which  judgment  may 
be  made  and  to  supervise  and  report  upon 
the  execution  of  decisions." 
The  Commission  specifically  recommended: 

"Under  the  President,  the  heads  of  de- 
partments must  hold  full  responsibility  for 
the  conduct  of  their  departments,"  and 

"Department  heads  must  have  adequate 
staff  assistance  if  they  are  to  achieve  effi- 
ciency and  economy  in  departmental  opera- 
tions." 

These  six  reorganization  plans  put  into  effect 
these  recommendations. 

Through  the  years  the  Congress  has  re- 
peatedly endorsed  the  policy  of  holding 
agency  heads  fully  accountable  for  all  the 
functions  of  their  agencies.  Last  year  this 
policy  was  pursued  in  the  legislation  author- 
izing reorganization  of  the  Department  of 
State  and  establishing  the  General  Services 
Administration.  A  reorganization  plan 
applying  this  principle  to  the  Post  Office 
Department  was  likewise  approved. 

However,  in  the  six  departments  covered 
by  these  plans,  all  functions  are  not  now 
uniformly  vested  in  the  department  heads. 
Some  statutory  authority  is  held  independ- 
endy  by  subordinate  oiSScers  and  agencies. 
These  plans  extend  fully  to  the  six  depart- 
ments the  principles  of  strengthening  de- 


partmental management  by  eliminating  the 
patchwork  exceptions  that  now  exist. 

The  transfers  recommended  in  these  plans 
accomplish  three  principal  objectives.  First, 
they  provide  a  clearer  line  of  responsibility 
and  authority  from  the  President  through 
the  department  heads  down  to  the  lowest 
level  of  operations  in  each  department. 
Second,  department  heads  are  made  respon- 
sible in  fact  for  activities  within  their  agen- 
cies for  which  they  are  now,  in  any  case,  held 
accountable  by  the  President,  the  Congress, 
and  the  people.  Third,  department  heads 
are  enabled  to  effect  appropriate  internal  ad- 
justments as  may  be  necessary  within  their 
departments  to  permit  the  most  effective 
organization  of  departmental  resources  and 
bring  about  continuous  improvement  in 
operations. 

These  reorganization  plans  exclude  from 
transfer  to  the  department  heads  two  classes 
of  functions  which  are  retained  in  their 
present  status.  These  are  the  functions  of 
the  hearing  examiners  appointed  under  the 
Administrative  Procedure  Act  and  the  func- 
tions of  government  corporations  in  the 
departments. 

The  provision  in  each  of  these  plans  for  an 
Administrative  Assistant  Secretary  is  also 
based  on  a  recommendation  of  the  Commis- 
sion on  Organization.  These  positions  were 
recommended  in  order  that  each  department 
head,  in  addition  to  being  made  fully  re- 
sponsible for  his  department,  be  given  ade- 
quate staff  facilities  to  assist  him  in  the 
managerial  side  of  his  responsibilities.  The 
accomplishment  of  specific  improvements  in 
management  can  be  made  only  through 
continuous  attention  to  the  effective  perform- 
ance of  such  aids  to  management  as  budget- 
ing, accounting,  personnel,  and  management 
analysis. 

For  the  government  as  a  whole  steps  arc 
being  taken  in  accord  with  the  Commission's 
recommendations  to  improve  the  usefulness 


200 


Harry  S.  Truman,  ig$o 


Mar.  13    [54] 


of  these  aids  to  management — steps  toward  a 
performance  budget,  improved  accounting 
methods,  better  personnel  administration, 
and  government-wide  management  improve- 
ment. The  results  of  these  actions  have  been 
promising,  but  they  demonstrate  also  that 
this  work  needs  increased  departmental  at- 
tention. While  the  responsibilities  of  the 
Administrative  Assistant  Secretaries  are  not 
fixed  by  these  plans,  it  is  intended  that  these 
officials  will  work  primarily  on  aiding  the 
department  heads  to  achieve  better  manage- 
ment. 

As  recommended  by  the  Commission  on 
Organization,  these  reorganization  plans 
provide  for  appointment  of  the  Administra- 
tive Assistant  Secretaries  from  the  classified 
civil  service  and  fix  a  salary  at  the  top  of 
that  service.  These  plans  also  provide  for 
appointment  by  the  department  heads  with 
the  approval  of  the  President.  Such  a  meth- 
od of  appointment  will  tend  to  establish  a 
career  pattern  for  these  positions  extending 
across  departmental  lines.  Presidential  ap- 
proval will  emphasize  that  the  Administra- 
tive Assistant  Secretaries  should  assume  a 
government-wide  approach  to  management 
problems.  This  arrangement  is  consonant 
with  the  authority  placed  in  the  President  by 
the  Classification  Act  of  1949  to  designate 
positions  in  the  top  grade  authorized  under 
that  Act. 

Two  of  the  reorganization  plans  provide 
additional  Assistant  Secretaries,  to  be  ap- 
pointed by  the  President  and  confirmed  by 
the  Senate,  one  in  the  Department  of  the 
Interior  and  two  in  the  Department  of  Agri- 
culture. This  step  is  in  accord  with  recom- 
mendations of  the  Commission  on  Organiza- 
tion. The  additional  Assistant  Secretaries 
are  needed  to  provide  more  adequate  staff 
assistance  in  supervising  and  directing  the 
policies  and  programs  of  these  large  depart- 
ments. At  present  the  Department  of  the 
Interior  has  two  such  officials  and  there  is  one 


such  position  in  the  Department  of  Agricul- 
ture. 

Under  the  provisions  of  Reorganization 
Plan  No.  2  the  tide  of  the  Assistant  to  the 
Attorney  General  is  changed  to  Deputy 
Attorney  General,  and  an  additional  Assist- 
ant Attorney  General  is  provided  in  lieu 
of  the  Assistant  Solicitor  General,  the 
latter  o£Sce  being  abolished.  These  changes 
are  designed  to  reflect  more  accurately  the 
position  and  responsibility  of  these  two  offi- 
cials of  the  Department  of  Justice. 

Reorganization  Plans  Nos.  7  to  75,  Relating 
to  Seven  Regulatory  Boards  and  Commis- 
sions 

Reorganization  Plans  Nos.  7  to  13,  inclu- 
sive, relate  to  the  Interstate  Commerce  Com- 
mission, the  Federal  Trade  Commission,  the 
Federal  Power  Commission,  the  Securities 
and  Exchange  Commission,  the  Federal 
Communications  Commission,  the  National 
Labor  Relations  Board,  and  the  Civil  Aero- 
nautics Board.  These  plans  are  designed  to 
strengthen  the  internal  administration  of 
these  bodies  by  making  the  Chairman,  rather 
than  the  commission  or  board  as  a  whole, 
responsible  for  day-to-day  administration. 
Also,  the  function  of  designating  the  Chair- 
man of  these  bodies  is  vested  in  the  Presi- 
dent in  those  instances  where  this  function  is 
not  already  a  Presidential  one. 

These  plans  carry  into  effect  the  first  and 
most  important  recommendation  of  the  Com- 
mission on  Organization  relating  to  regu- 
latory commissions.  The  Commission  rec- 
ommended "that  all  administrative  respon- 
sibility be  vested  in  the  Chairman  of  the 
Commission."  Its  reasons  were  summarized 
as  follows: 

"Purely  executive  duties — those  that  can 
be  performed  far  better  by  a  single  admin- 
istrative official — ^have  been  imposed  upon 
these  commissions  with  the  result  that  these 
duties  have  sometimes  been  performed  badly. 


201 


[54]    Mar.  13 


Public  Papers  of  the  Presidents 


The  necessity  for  performing  them  has  inter- 
fered with  the  performance  of  the  strictly 
regulatory  functions  of  the  commissions." 
Elsewhere  the  Commission  observed: 

"Administration  by  a  plural  executive  is 
universally  regarded  as  ineflScient.  This 
has  proved  to  be  true  in  connection  with 
these  commissions." 

Since  the  creation  of  the  Interstate  Com- 
merce Commission  in  1887,  the  board  or  com- 
mission has  been  an  established  form  of 
Federal  organization  for  regulatory  activ- 
ities. The  plural  membership  of  each  of 
these  agencies  has  been  based,  presumably, 
on  the  usefulness  of  deliberation  in  the  rule- 
making and  adjudicative  processes.  How- 
ever, as  their  work  has  developed  through 
the  years,  each  of  these  agencies  has  become, 
in  addition  to  a  deliberative  body,  an  orga- 
nization of  staff  elements  whose  work 
must  be  programmed  and  whose  members 
must  be  recruited,  supervised,  and  led.  The 
smallest  of  these  staffs  is  now  over  600  in 
number  and  the  largest  over  2,000,  and  the 
difficulties  of  supervision  are  multiplied  be- 
cause of  the  highly  technical  nature  of  the 
legal,  engineering,  accounting,  and  other 
skills  which  must  be  successfully  interrelated. 

The  commissions,  concerned  primarily 
with  the  substantive  problems  of  regulation 
and  with  the  adjudication  of  cases,  cannot 
give  adequate  attention  to  the  day-to-day 
executive  direction  of  complex  organiza- 
tions. To  the  extent  that  they  have  con- 
cerned themselves  with  administrative  prob- 
lems, the  unwieldiness  of  the  structure  has 
sometimes  rendered  administration  slow, 
cumbersome,  and  indecisive. 

Accordingly,  within  the  limitations  ex- 
plained in  later  paragraphs,  each  of  these 
plans  vests  in  the  Chairman,  in  each  case, 
responsibility  for  appointment  and  super- 
vision of  personnel  employed  under  the  com- 
mission, for  distribution  of  business  among 
such  personnel  and  among  administrative 


units  of  the  commission,  and  for  the  use 
and  expenditure  of  funds. 

In  the  conduct  of  all  of  these  activities,  the 
Chairman  will  be  bound  by  the  general 
policies  established  by  the  commission  and 
by  its  regulatory  decisions,  findings,  and 
determinations.  In  addition,  the  right  is 
specifically  reserved  to  the  commission  to  re- 
vise budget  estimates  and  determine  the  dis- 
tribution of  funds  among  the  major  pro- 
grams and  purposes  of  the  agency.  The 
appointment  of  the  heads  of  major  adminis- 
trative units  under  the  commission  is  subject 
to  approval  of  the  commission,  and  each 
Commissioner  retains  responsibility  for  ac- 
tions affecting  personnel  employed  regularly 
and  full  time  in  his  immediate  office. 

The  proposals  contained  in  these  reorga- 
nizations are  not  new.  Several  of  the  com- 
missions have  already  made  considerable 
progress  in  placing  administrative  respon- 
sibility in  their  Chairman.  Therefore,  the 
effect  of  these  plans  is  to  extend  uniformly 
to  all  commissions  a  pattern  of  organization 
demonstrated  by  experience  to  be  successful. 

The  fact  that  under  these  reorganization 
plans  the  commissions  retain  all  substantive 
responsibilities  deserves  special  emphasis. 
The  plans  only  eliminate  multi-headed  su- 
pervision of  internal  administrative  func- 
tioning. The  commissions  retain  policy  con- 
trol over  administrative  activities  since  these 
are  subject  to  the  general  policies  and  regu- 
latory decisions,  findings,  and  determinations 
of  the  commissions. 

The  plans  do  not  contemplate  that  the 
Chairman  will  be  relieved  of  any  of  his 
duties  as  a  member  and  presiding  ofiScer  of 
the  commission.  They  simply  place  on  him 
the  additional  responsibilities  for  the  opera- 
tions of  the  staff.  The  Chairman  will  need 
to  establish  the  necessary  administrative  ar- 
rangements to  carry  out  these  responsibilities. 

Reorganization  Plan  No.  12  terminates 
the  present  division  and  confusion  of  respon- 


202 


Harry  S.  Truman,  ig^o 


Mar.  13    [55] 


sibility  in  the  National  Labor  Rdations 
Board  by  abolishing  the  office  of  the  General 
Counsel  of  the  Board.  The  Senate  last 
year  indicated  its  approval  of  this  step.  The 
reorganization  plan  in  effect  restores  unified 
authority  and  responsibility  in  the  Board.  As 
in  the  case  of  the  other  plans  for  regulatory 
agencies,  certain  administrative  and  execu- 
tive responsibilities  are  placed  in  the  Chair- 
man. The  relationship  betv^een  the  Board 
and  the  Chairman  is  identical  with  that  pro- 
vided for  the  other  regulatory  agencies.  This 
action  eliminates  a  basic  defect  in  the  pres- 
ent organization  of  the  National  Labor  Re- 
lations Board  and  provides  an  organizational 
pattern  consistent  with  that  established  for 
the  other  regulatory  agencies. 

In  the  plans  relative  to  four  commissions — 
the  Interstate  Commerce  Commission,  the 
Federal  Trade  Commission,  the  Federal 
Power  Commission,  and  the  Securities  and 
Exchange  Commission — the  function  of  des- 
ignating the  Chairman  is  transferred  to  the 
President.  The  President  by  law  now  desig- 
nates the  Chairmen  of  the  other  three  regu- 
latory commissions  covered  by  these  plans. 
The  designation  of  all  Chairmen  by  the 


President  follows  out  the  general  concept 
of  the  Commission  on  Organization  for  pro- 
viding clearer  lines  of  management  responsi- 
bility in  the  Executive  Branch.  The  plans 
are  aimed  at  achieving  more  fully  these 
management  objectives  and  are  not  intended 
to  affect  the  independent  exercise  of  the 
commissions*  regulatory  functions. 

All  thirteen  of  these  reorganization  plans 
will  aid  in  making  a  more  efficient  govern- 
ment. The  plans  affecting  the  departments 
will  help  straighten  out  the  lines  of  respon- 
sibility and  authority,  improve  administra- 
tive accountability,  and  make  departmental 
management  sufficiendy  flexible  to  meet 
changing  problems.  The  plans  relating  to 
the  regulatory  commissions  will  result  in  the 
more  businesslike  and  effective  administra- 
tion of  the  Government's  regulatory  pro- 
grams. In  short,  these  plans  provide  for 
better  management  of  the  executive  depart- 
ments and  regulatory  commissions  and  thus 
will  assure  to  the  public  the  best  possible 
service  at  the  lowest  possible  costs. 

Harry  S.  Truman 

note:  For  further  messages  to  the  Congress  on  Re- 
organization Plans  1-13,  see  Items  55-67. 


55     Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  I  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  I  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  provid- 
ing for  reorganizations  in  the  Department 
of  the  Treasury.  My  reasons  for  transmit- 
ting this  plan  are  stated  in  an  accompanying 
general  message. 

After  investigation  I  have  found  and  here- 
by declare  that  each  reorganization  included 
in  Reorganization  Plan  No.  i  of  1950  is 
necessary  to  accomplish  one  or  more  of  the 
purposes  set  forth  in  section  2(a)   of  the 


Reorganization  Act  of  1949. 

I  have  found  and  hereby  declare  that  it  is 
necessary  to  include  in  the  accompanying 
reorganization  plan,  by  reason  of  reorgani- 
zations made  thereby,  provisions  for  the 
appointment  and  compensation  of  an  Ad- 
ministrative Assistant  Secretary  of  the  Treas- 
ury. The  rate  of  compensation  fixed  for 
this  officer  is  that  which  I  have  found  to 
prevail  in  respect  of  comparable  officers  in 
the  Executive  Branch  of  the  Government. 

The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  result 


203 


[55]    Mar.  13 


Public  Papers  of  the  Presidents 


in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 
probable  during  the  next  years  v^hich  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.    An  itemization  of  these  reduc- 


tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  i  of  1950  is  printed  in 
House  Document  505  (8ist  Cong.,  2d  sess.).  It 
did  not  become  effective. 


56    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  2  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herev^^ith  Reorganization  Plan 
No.  2  of  1950,  prepared  in  accordance  Wixh 
the  Reorganization  Act  of  1949  and  provid- 
ing for  reorganizations  in  the  Department  of 
Justice.  My  reasons  for  transmitting  this 
plan  are  stated  in  an  accompanying  general 
message. 

After  investigation  I  have  found  and  here- 
by declare  that  each  reorganization  included 
in  Reorganization  Plan  No.  2  of  1950  is 
necessary  to  accomplish  one  or  more  of  the 
purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 

I  have  found  and  hereby  declare  that  it  is 
necessary  to  include  in  the  accompanying 
reorganization  plan,  by  reason  of  reorgani- 
zations made  thereby,  provisions  for  the  ap- 
pointment and  compensation  of  an  Assistant 
Attorney   General   and   an   Administrative 


Assistant  Attorney  General.  The  rate  of 
compensation  fixed  for  these  officers  is  that 
which  I  have  found  to  prevail  in  respect  of 
comparable  officers  in  the  Executive  Branch 
of  the  Government. 

The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 
probable  during  the  next  years  which  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.  An  itemization  of  these  reduc- 
tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  2  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1261)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code  of 
Federal  Regulations  (p.  1002).  It  became  effective 
on  May  24,  1950. 


57    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  3  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  3  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  pro- 
viding for  reorganizations  in  the  Depart- 
ment of  the  Interior.  My  reasons  for 
transmitting  this  plan  are  stated  in  an  ac- 
companying general  message. 

After   investigation    I    have   found    and 


hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  3  of  1950 
is  necessary  to  accomplish  one  or  more  of 
the  purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 

I  have  found  and  hereby  declare  that  it  is 
necessary  to  include  in  the  accompanying 
reorganization  plan,  by  reason  of  reorgani- 
zations made  thereby,  provisions  for  the  ap- 


204 


Harry  S.  Truman,  ig^o 


Mar.  13    [59] 


pointment  and  compensation  of  an  Assistant 
Secretary  of  the  Interior  and  an  Administra- 
tive Assistant  Secretary  of  the  Interior.  The 
rate  of  compensation  fixed  for  these  officers 
is  that  which  I  have  found  to  prevail  in 
respect  of  comparable  officers  in  the  Execu- 
tive Branch  of  the  Government. 

The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  re- 
sult in  substantial  immediate  savings. 
However,  many  benefits  in  improved  op- 


erations are  probable  during  the  next  years 
which  will  result  in  a  reduction  in  expendi- 
tures as  compared  with  those  that  would  be 
otherwise  necessary.  An  itemization  of 
these  reductions  in  advance  of  actual  ex- 
perience under  this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  3  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1262)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1003).  It  became  ef- 
fective on  May  24,  1950. 


58    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  4  of  1950.    March  13, 1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  4  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  provid- 
ing for  reorganizations  in  the  Department 
of  Agriculture.  My  reasons  for  transmitting 
this  plan  are  stated  in  an  accompanying 
general  message. 

After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  4  of  1950 
is  necessary  to  accomplish  one  or  more  of  the 
purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 

I  have  found  and  hereby  declare  that  it  is 
necessary  to  include  in  the  accompanying 
reorganization  plan,  by  reason  of  reorganiza- 
tions made  thereby,  provisions  for  the 
appointment  and  compensation  of  two  As- 
sistant Secretaries  of  Agriculture  and  an  Ad- 


ministrative Assistant  Secretary  of  Agricul- 
ture. The  rate  of  compensation  fixed  for 
these  officers  is  that  which  I  have  found  to 
prevail  in  respect  of  comparable  officers  in 
the  Executive  Branch  of  the  Government. 

The  taking  effect  of  the  reorganizations  in- 
cluded in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 
probable  during  the  next  years  which  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.  An  itemization  of  these  reduc- 
tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  4  of  1950  is  printed  in 
House  Document  508  (8ist  Cong.,  2d  sess.).  It 
did  not  become  effective. 


59    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  5  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  5  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  pro- 


viding for  reorganizations  in  the  Depart- 
ment of  Commerce.  My  reasons  for 
transmitting  this  plan  are  stated  in  an  ac- 
companying general  message. 


205 


[59]    Mar.  13 


Public  Papers  of  the  Presidents 


After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  5  of 
1950  is  necessary  to  accomplish  one  or  more 
of  the  purposes  set  forth  in  section  2(a)  of 
the  Reorganization  Act  of  1949. 

I  have  found  and  hereby  declare  that  it 
is  necessary  to  include  in  the  accompanying 
reorganization  plan,  by  reason  of  reorgani- 
zations made  thereby,  provisions  for  the  ap- 
pointment and  compensation  of  an  Admin- 
istrative Assistant  Secretary  of  Commerce. 
The  rate  of  compensation  fixed  for  this  of- 
ficer is  that  which  I  have  found  to  prevail 
in  respect  of  comparable  officers  in  the  Ex- 
ecutive Branch  of  the  Government. 


The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  How- 
ever, many  benefits  in  improved  operations 
are  probable  during  the  next  years  which 
will  result  in  a  reduction  in  expenditures  as 
compared  with  those  that  would  be  other- 
wise necessary.  An  itemization  of  these  re- 
ductions in  advance  of  actual  experience 
under  this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  5  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1263)  and 
in  the  1 949-1 953  Compilation  of  title  3  of  the 
Code  of  Federal  Regulations  (p.  1004).  It  became 
effective  on  May  24,  1950. 


60    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  6  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  6  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  pro- 
viding for  reorganizations  in  the  Department 
of  Labor.  My  reasons  for  transmitting  this 
plan  are  stated  in  an  accompanying  general 
message. 

After  investigation  I  have  found  and  here- 
by declare  that  each  reorganization  included 
in  Reorganization  Plan  No.  6  of  1950  is 
necessary  to  accomplish  one  or  more  of  the 
purposes  set  forth  in  section  2(a)  of  the  Re- 
organization Act  of  1949. 

I  have  found  and  hereby  declare  that  it 
is  necessary  to  include  in  the  accompanying 
reorganization  plan,  by  reason  of  reorganiza- 
tions made  thereby,  provisions  for  the  ap- 
pointment and  compensation  of  an  Admin- 
istrative Assistant  Secretary  of  Labor.    The 


rate  of  compensation  fixed  for  this  officer  is 
that  which  I  have  found  to  prevail  in  respect 
of  comparable  officers  in  the  Executive 
Branch  of  the  Government. 

The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  How- 
ever, many  benefits  in  improved  operations 
are  probable  during  the  next  years  which  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.  An  itemization  of  these  reduc- 
tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  6  of  1950  is  published  in 
the  U.S.  Statutes  at  Large  (64  Stat.  1263)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1004).  It  became  effec- 
tive on  May  24,  1950. 


206 


Harry  S.  Truman,  ig^o 


Mar.  13    [63] 


61     Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  7  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  7  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  provid- 
ing for  reorganizations  in  the  Interstate 
Commerce  Commission.  My  reasons  for 
transmitting  this  plan  are  stated  in  an  ac- 
companying general  message. 

After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  7  of  1950 
is  necessary  to  accomplish  one  or  more  of 
the  purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 


The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 
probable  during  the  next  years  which  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.  An  itemization  of  these  reduc- 
tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  7  of  1950  is  printed  in 
House  Document  511  (81  st  Cong.,  2d  sess.).  It  did 
not  become  effective. 


62    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  8  of  1950.    March  13, 1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  8  of  195O5  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  provid- 
ing for  reorganizations  in  the  Federal  Trade 
Commission.  My  reasons  for  transmitting 
this  plan  are  stated  in  an  accompanying 
general  message. 

After  investigation  I  have  found  and  here- 
by declare  that  each  reorganization  included 
in  Reorganization  Plan  No.  8  of  1950  is  nec- 
essary to  accomplish  one  or  more  of  the 
purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 

The  taking  effect  of  the  reorganizations 


included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 
probable  during  the  next  years  which  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.  An  itemization  of  these  reduc- 
tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  8  of  1950  is  published  in 
the  U.S.  Statutes  at  Large  (64  Stat.  1264)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1005).  It  became  effec- 
tive on  May  24, 1950. 


63    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  9  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  9  of  1950,  prepared  in  accordance  with 


the  Reorganization  Act  of  1949  and  provid- 
ing for  reorganizations  in  the  Federal  Power 
Commission.    My  reasons  for  transmitting 


207 


[63]    Mar.  13 


Public  Papers  of  the  Presidents 


this  plan  are  stated  in  an  accompanying 
general  message. 

After  investigation  I  have  found  and  here- 
by declare  that  each  reorganization  included 
in  Reorganization  Plan  No.  9  of  1950  is 
necessary  to  accomplish  one  or  more  of  the 
purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 

The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 


probable  during  the  next  years  v^hich  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.  An  itemization  of  these  reduc- 
tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  9  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1265)  and  in 
the  1 949-1 953  Compilation  of  tide  3  of  the  Code  of 
Federal  Regulations  (p.  1005).  It  became  effective 
on  May  24, 1950. 


64    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  10  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  10  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  pro- 
viding for  reorganizations  in  the  Securities 
and  Exchange  Commission.  My  reasons  for 
transmitting  this  plan  are  stated  in  an  ac- 
companying general  message. 

After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  10  of 
1950  is  necessary  to  accomplish  one  or  more 
of  the  purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 
The  taking  effect  of  the  reorganizations 


included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  How- 
ever, many  benefits  in  improved  operations 
are  probable  during  the  next  years  which 
will  result  in  a  reduction  in  expenditures  as 
compared  with  those  that  would  be  other- 
wise necessary.  An  itemization  of  these 
reductions  in  advance  of  actual  experience 
under  this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  10  o£  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1265)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1006).  It  became  ef- 
fective on  May  24,  1950. 


65    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  II  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  II  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  pro- 
viding for  reorganizations  in  the  Federal 
Communications  Commission.  My  reasons 
for  transmitting  this  plan  are  stated  in  an  ac- 
companying general  message. 


After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  11  of 
1950  is  necessary  to  accomplish  one  or  more 
of  the  purposes  set  forth  in  section  2(a)  of 
the  Reorganization  Act  of  1949. 

The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  result 


208 


Harry  S.  Truman,  ig^o 


Mar.  13    [67] 


in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 
probable  during  the  next  years  which  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.    An  itemization  of  these  reduc- 


tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  11  of  1950  is  printed  in 
House  Document  515  (8ist  Cong.,  2d  sess.).  It 
did  not  become  effective. 


66    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  12  of  1950.    March  13, 1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  12  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  provid- 
ing for  reorganizations  in  the  National  Labor 
Relations  Board.  My  reasons  for  transmit- 
ting this  plan  are  stated  in  an  accompanying 
general  message. 

After  investigation  I  have  found  and  here- 
by declare  that  each  reorganization  included 
in  Reorganization  Plan  No.  12  of  1950  is 
necessary  to  accomplish  one  or  more  of  the 
purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 


The  taking  effect  of  the  reorganizations 
included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 
probable  during  the  next  years  which  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.  An  itemization  of  these  reduc- 
tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  12  of  1950  is  printed  in 
House  Document  516  (8ist  Cong.,  2d  sess.).  It  did 
not  become  effective. 


6j    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  13  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  13  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949  and  provid- 
ing for  reorganizations  in  the  Civil  Aero- 
nautics Board.  My  reasons  for  transmitting 
this  plan  are  stated  in  an  accompanying 
general  message. 

After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  13  of 
1950  is  necessary  to  accomplish  one  or  more 
of  the  purposes  set  forth  in  section  2(a)  of 
the  Reorganization  Act  of  1949. 
The  taking  effect  of  the  reorganizations 


included  in  this  plan  may  not  in  itself  result 
in  substantial  immediate  savings.  However, 
many  benefits  in  improved  operations  are 
probable  during  the  next  years  which  will 
result  in  a  reduction  in  expenditures  as  com- 
pared with  those  that  would  be  otherwise 
necessary.  An  itemization  of  these  reduc- 
tions in  advance  of  actual  experience  under 
this  plan  is  not  practicable. 

Harry  S.  Truman 

note:  Reorganization  Plan  13  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1266)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1006).  It  became  effec- 
tive on  May  24, 1950. 


209 


[68]    Mar.  13 


Public  Papers  of  the  Presidents 


68    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  14  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  14  of  1950,  prepared  in  accordance  with 
the  provisions  of  the  Reorganization  Act  of 
1949.  For  the  purpose  of  coordinating  the 
administration  of  labor  standards  under  vari- 
ous statutes  relating  to  Federal  construction 
and  public  works  or  to  construction  with 
Federally  financed  assistance  or  guarantees, 
the  reorganization  plan  authorizes  the  Sec- 
retary of  Labor  to  prescribe  appropriate 
standards,  regulations  and  procedures  with 
respect  to  these  matters  and  to  make  such 
investigations  concerning  compliance  with 
and  enforcement  of  labor  standards  as  he 
deems  desirable.  The  purpose  is  to  assure 
consistent  and  eflfective  enforcement  of  such 
standards. 

The  plan  is  in  general  accord  with  the 
recommendations  of  the  Commission  on 
Organization  of  the  Executive  Branch  of  the 
Government.  It  constitutes  a  further  step  in 
rebuilding  and  strengthening  the  Depart- 
ment of  Labor  to  make  it  the  central  agency 
of  the  Government  for  dealing  with  labor 
problems. 

After  investigation,  I  have  found  and 
hereby  declare  that  the  reorganization  con- 
tained in  this  plan  is  necessary  to  accomplish 
one  or  more  of  the  purposes  set  forth  in  sec- 
tion 2(a)  of  the  Reorganization  Act  of  1949. 

There  are  several  laws  regulating  wages 
and  hours  of  workers  employed  on  Federal 
contracts  for  public  works  or  construction. 
The  "Eight  Hour  Laws"  limit  the  employ- 
ment of  laborers  and  mechanics  on  such  proj- 
ects to  eight  hours  per  day  and  permit  their 
employment  in  excess  of  that  limit  only  upon 
condition  that  time  and  one-half  the  basic 
wage  rate  is  paid  for  the  excess  hours.  The 
Davis-Bacon  Act  provides  that  the  minimum 


rates  of  pay  for  laborers  and  mechanics  on 
certain  Federal  public  works  contracts  shall 
be  those  prevailing  for  the  corresponding 
classes  of  workers  in  the  locality  as  deter- 
mined by  the  Secretary  of  Labor.  The 
Copeland  Anti-Kickback  Law  prohibits  the 
exaction  of  rebates  or  kickbacks  from  work- 
ers employed  on  the  construction  of  Federal 
public  works  or  works  financed  by  the  Fed- 
eral Government  and  authorizes  the  Secre- 
tary of  Labor  to  make  regulations  for  con- 
tractors engaged  on  such  projects. 

In  addition  to  the  above  statutes,  there  are 
several  Acts  which  require  the  payment  of 
prevailing  wage  rates,  as  determined  by  the 
Secretary  of  Labor,  to  laborers  and  mechanics 
employed  on  construction  financed  in  whole 
or  in  part  by  loans  or  grants  from  the  Fed- 
eral Government  or  by  mortgages  guaran- 
teed by  the  Federal  Government.  These 
Acts  are:  The  National  Housing  Act,  the 
Housing  Act  of  1949,  the  Federal  Airport 
Act,  and  the  Hospital  Survey  and  Construc- 
tion Act  of  1946. 

With  the  exception  of  the  Department  of 
Labor,  the  Federal  agencies  involved  in  the 
administration  of  the  various  Acts  are  di- 
vided into  two  classes:  (i)  agencies  which 
contract  for  Federal  public  works  or  con- 
struction; and  (2)  agencies  which  lend  or 
grant  Federal  funds,  or  act  as  guarantors  of 
mortgages,  to  aid  in  the  construction  of  proj- 
ects to  be  built  by  State  or  local  public 
agencies  or  private  individuals  and  groups. 
The  methods  of  enforcing  labor  standards 
necessarily  differ  between  these  two  groups 
of  agencies. 

The  methods  adopted  by  the  various 
agencies  for  the  enforcement  of  labor  stand- 
ards vary  widely  in  character  and  effective- 
ness.   As  a  result,  uniformity  of  enforce- 


210 


Harry  S.  Truman,  ig^o 


Mar.  13    [69] 


ment  is  lacking  and  the  degree  of  protection 
afforded  workers  varies  from  agency  to 
agency. 

In  order  to  correct  this  situation,  this  plan 
authorizes  the  Secretary  of  Labor  to  co- 
ordinate the  administration  of  legislation  re- 
lating to  wages  and  hours  on  Federally  fi- 
nanced or  assisted  projects  by  prescribing 
standards,  regulations,  and  procedures  to 
govern  the  enforcement  activities  of  the 
various  Federal  agencies  and  by  making  such 
investigations  as  he  deems  desirable  to  as- 
sure consistent  enforcement.  The  actual 
performance  of  enforcement  activities, 
normally    including    the    investigation    of 


complaints  of  violations,  will  remain  the 
duty  of  the  respective  agencies  awarding  the 
contracts  or  providing  the  Federal  assistance. 
Since  the  principal  objective  of  the  plan 
is  more  effective  enforcement  of  labor  stand- 
ards, it  is  not  probable  that  it  will  result  in 
savings.  But  it  will  provide  more  uniform 
and  more  adequate  protection  for  workers 
through  the  expenditures  made  for  the  en- 
forcement of  the  existing  legislation. 

Harry  S.  Truman 

note:  Reorganization  Plan  14  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1267)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1007).  It  became  ef- 
fective on  May  24, 1950. 


69    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plans  15,  165  and  17  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  am  transmitting  today  Reorganization 
Plans  Nos.  15,  16,  and  17  of  1950,  prepared 
in  accordance  with  the  provisions  of  the  Re- 
organization Act  of  1949.  The  three  plans 
transfer  various  activities  of  the  General 
Services  Administration  to  other  departments 
and  agencies  as  follov^s:  Plan  No.  15  assigns 
the  administration  of  the  Alaska  and  Virgin 
Islands  public  w^orks  programs  to  the  Depart- 
ment of  the  Interior;  Plan  No.  16  transfers 
the  responsibility  for  financial  assistance  to 
public  school  districts  and  grants  and  loans 
for  water  pollution  control  to  the  Federal 
Security  Agency;  and  Plan  No.  17  transfers 
the  administration  of  advances  for  the  plan- 
ning of  non-Federal  public  works  and  the 
management  and  disposal  of  certain  war 
public  works  to  the  Housing  and  Home 
Finance  Agency. 

These  plans  will  contribute  to  the  further 
development  of  the  General  Services  Ad- 
ministration as  a  central  services  agency  by 
transferring   several    specialized    functions, 


which  it  has  at  present,  to  more  appropriate 
locations  within  the  Government.  At  the 
same  time  Reorganization  Plans  No.  18  and 
20,  which  I  am  also  transmitting  to  the  Con- 
gress today,  assign  to  the  Administration 
additional  responsibility  for  such  services  as 
the  control  of  space  in  public  buildings  and 
the  publication  and  preservation  of  various 
public  documents. 

The  General  Services  Administration  was 
created  by  the  Federal  Property  and  Ad- 
ministrative Services  Act  of  1949  to  provide 
a  focal  point  within  the  Executive  Branch 
for  the  provision  and  improvement  of  such 
common  administrative  services  as  supply, 
buildings  administration  and  records  man- 
agement. The  act  sought  to  achieve  this 
objective  by  consolidating  in  the  new  Ad- 
ministration a  group  of  service  activities 
which  had  previously  been  scattered  through- 
out the  Executive  Branch. 

Many  of  these  service  activities  at  the  time 
the  act  was  passed  were  being  performed  by 
the  Federal  Works  Agency.    At  the  same 


211 


[69]    Mar.  13 


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time  the  Federal  Works  Agency  was  per- 
forming certain  specialized  functions  not  of 
interest  to  the  government  as  a  whole. 
When  the  Congress  transferred  all  the  func- 
tions of  the  Federal  Works  Agency  to  the 
General  Services  Administration  it  was  rec- 
ognized that  these  specialized  functions 
should  be  separated  out  at  a  later  date  by  re- 
organization action.  Only  if  this  is  done 
will  the  General  Services  Administration  be 
able  to  fulfill  its  basic  function  and  concen- 
trate its  efforts  on  the  improvement  of  the 
vast  and  complex  service  activities  of  the 
Federal  Government. 

The  transfers  effected  by  these  plans  are 
consistent  with  the  recommendations  of  the 
Commission  on  Organization  of  the  Execu- 
tive Branch  of  the  Government.  The  pro- 
grams which  involve  direct  Federal  construc- 
tion are  transferred  to  the  Department  of  the 
Interior.  The  programs  involving  grants  or 
loans  to  states  and  localities  are  transferred 
to  the  departments  and  agencies  having 
major  responsibility  for  these  particular 
activities. 

This  general  message  states  my  reasons  for 
transmitting  Reorganization  Plans  Nos.  15, 
16,  and  17.  The  legal  findings  as  to  neces- 
sity and  savings  required  by  the  Reorganiza- 
tion Act  of  1949  are  included  in  separate 
messages  transmitting  each  of  the  three  plans. 

REORGANIZATION  PLAN  NO.  15 

(Alaska  and  Virgin  Islands  Public  Works) 

Reorganization  Plan  No.  15  transfers  the 
responsibilities  of  the  General  Services  Ad- 
ministrator for  public  works  programs  in 
Alaska  and  the  Virgin  Islands  to  the  Secre- 
tary of  the  Interior  in  order  that  the  direction 
of  these  activities  may  be  assumed  by  the  De- 
partment generally  charged  with  the  de- 
velopment and  welfare  of  Alaska  and  the 
Virgin  Islands.    The  Alaska  public  works 


program  is  very  new,  having  been  authorized 
by  Public  Law  264  of  the  8ist  Congress. 
This  Act  empowers  the  General  Services  Ad- 
ministrator, with  the  concurrence  of  the 
Secretary  of  the  Interior,  to  build  community 
facilities  for  public  bodies  in  the  Territory 
for  an  average  purchase  price  of  one-half  of 
the  estimated  cost  of  construction.  The  Vir- 
gin Islands  program  is  much  smaller  and  has 
been  in  effect  since  the  approval  on  Decem- 
ber 20,  1944,  of  Public  Law  510,  78th  Con- 
gress. Under  the  provisions  of  this  Act,  the 
General  Services  Administrator  builds 
various  public  facilities  authorized  by  the 
legislation. 

Both  the  Alaska  and  the  Virgin  Islands 
programs  involve  the  direct  provision  of 
assistance  to  eligible  public  bodies.  Both 
projects  involve  construction  by  the  Federal 
Government  of  approved  facilities,  which 
upon  completion  are  turned  over  to  the  local 
authorities  for  which  they  were  built.  These 
responsibilities  are  thus  largely  unrelated  to 
the  administrative  services  with  which  the 
General  Services  Administration  is  primarily 
concerned. 

The  Department  of  the  Interior  is  already 
charged  with  the  supervision  of  public  works 
units  in  the  Caribbean  area  and  in  Alaska. 
Chief  among  these  are  the  Alaska  Road 
Commission  and  the  Puerto  Rico  Recon- 
struction Administration.  Moreover,  the 
operations  of  the  Alaska  Railroad  and  the 
Virgin  Islands  Corporation  are  under  the 
supervision  of  the  Department.  Also  of 
importance  in  the  administration  of  these 
public  works  programs  are  the  close  rela- 
tionships which  exist  between  the  Depart- 
ment of  the  Interior  and  the  governors  of 
Alaska  and  the  Virgin  Islands.  These  oflS- 
cials  are  appointed  by  the  President,  but  they 
normally  report  through  the  Secretary  of  the 
Interior.  The  transfer  will  thus  clarify  re- 
sponsibility and  simplify  relationships  in  the 


212 


Harry  S.  Truman,  ig^o 


Mar.  13    [69] 


execution    of    public    works    activities    in 
Alaska  and  the  Virgin  Islands. 

REORGANIZATION   PLAN   NO.    1 6 

(Assistance  to  School  Districts  and  Water 
Pollution  Control) 

Reorganization  Plan  No.  i6  transfers  the 
school  assistance  and  water  pollution  control 
activities  of  the  General  Services  Adminis- 
tration to  the  Federal  Security  Agency. 

The  rendering  of  assistance  to  local  school 
districts  overburdened  by  the  activation  of 
Federal  projects  or  installations  was  first 
authorized  by  the  Lanham  Act  of  1940,  as 
amended.  Since  the  expiration  of  the  Lan- 
ham Act  there  have  been  four  one-year  ex- 
tensions of  the  program.  The  plan  will 
place  the  responsibility  for  its  future  admin- 
istration in  the  Federal  Security  Agency, 
whose  Office  of  Education  is  generally  re- 
sponsible for  the  execution  of  Federal-aid 
programs  designed  to  improve  or  extend 
educational  opportunities. 

Reorganization  Plan  No.  16  also  consoli- 
dates responsibility  for  the  administration  of 
the  Water  Pollution  Control  Act  of  1948  in 
the  Federal  Security  Agency  by  transferring 
to  it  the  functions  of  the  General  Services 
Administration  relating  to  grants  and  loans 
for  the  planning  and  construction  of  sewage 
treatment  plants. 

At  the  present  time  over  90  percent  of  the 
administration  of  the  water  pollution  con- 
trol activities  authorized  by  Public  Law  845, 
8oth  Congress,  is  carried  on  by  the  Public 
Health  Service  of  the  Federal  Security 
Agency.  That  agency  is  already  responsible 
for  the  preparation  of  comprehensive  water 
pollution  control  plans  for  interstate  streams, 
for  the  conduct  of  surveys  and  research,  for 
the  maintenance  of  relationships  with  state 
water  pollution  control  agencies,  and  for  the 
approval  of  sewage  treatment  projects  for 


which  grants  or  loans  are  requested  by  state 
or  local  authorities.  The  effect  of  the  plan 
will  be  to  place  the  entire  responsibility  for 
the  approval  and  administration  of  the  grant 
and  loan  provisions  of  the  Water  Pollution 
Control  Act  in  the  Federal  Security  Agency, 
as  the  agency  with  the  predominant  interest 
in  the  attainment  of  the  objectives  of  the 
legislation. 

The  consolidation  of  water  pollution  con- 
trol functions  will  simplify  relationships  with 
the  state  and  local  governments  participating 
in  the  program.  Under  the  existing  arrange- 
ments two  Federal  agencies  must  take  part 
in  the  review  and  approval  of  each  request 
for  a  grant  or  loan.  The  Reorganization 
Plan  will  make  it  possible  for  applicants  to 
look  exclusively  to  the  river  basin  offices  of 
the  Public  Health  Service  in  seeking  infor- 
mation or  assistance  in  the  abatement  of 
water  pollution. 

REORGANIZATION  PLAN   NO.    17 

(Advance  Planning  and  War  Public  Works) 

Reorganization  Plan  No.  17  transfers  two 
of  the  programs  of  the  General  Services 
Administration  to  the  Housing  and  Home 
Finance  Agency.  The  first  of  these  involves 
the  administration  of  advances  to  state  and 
local  governments  for  the  planning  of  public 
works.  This  transfer  is  consistent  with 
recent  action  of  the  Congress  which  has 
given  the  Housing  and  Home  Finance 
Agency  an  important  function  in  the  orderly 
planning  and  development  of  the  public 
facilities  and  physical  characteristics  of 
American  communities. 

The  advance  planning  of  non-Federal  pub- 
lic works  was  revived  as  an  activity  of  the 
Government  of  the  United  States  by  Public 
Law  352,  approved  October  13,  1949.  ^^ 
authorizes  repayable  advances  to  state  and 
local  governments  for  the  planning  of  a  shelf 


213 


[69]    Mar.  13 


Public  Papers  of  the  Presidents 


of  public  works  available  both  for  emergen- 
cies and  to  meet  the  growing  needs  of  com- 
munities. Within  the  limits  of  available 
funds,  Federal  aid  is  extended  to  any  state 
or  local  government  which  applies  for  an 
advance  if  the  proposed  project  conforms  to 
the  over-all  plans  approved  by  competent 
state,  local  or  regional  authorities,  if  the  ap- 
plicant possesses  the  legal  authority  to  pro- 
ceed with  construction,  and  if  the  financial 
resources  of  the  community  are  found  to  be 
adequate  to  make  the  undertaking  feasible. 
Advances  have  been  requested  chiefly  to  aid 
in  the  planning  of  water  and  sewer  systems, 
schools,  urban  streets  and  roads  and  miscel- 
laneous public  buildings.  Both  the  intent  of 
the  Act  and  the  nature  of  the  facilities 
planned  require  that  the  Federal  agency  ad- 
ministering Public  Law  352  have  an  under- 
standing of  how  advance  planning  can  con- 
tribute to  community  development. 

The  Housing  Act  of  1949  assigned  to  the 
Housing  and  Home  Finance  Administrator 
the  responsibility  for  executing  the  slum 
clearance  and  community  development  pro- 
visions of  the  statute.  The  adequate  ad- 
ministration of  this  program  requires  that 
attention  be  directed  to  the  planning  of 
urban  communities,  including  the  various 
public  facilities  needed  to  assure  the  inte- 
grated development  of  project  areas.  The 
Housing  and  Home  Finance  Agency  must 
maintain  continuous  liaison  with  local  of- 
ficials, it  must  appraise  accurately  and  thor- 
oughly the  capacity  of  communities  to  fi- 
nance the  projects  authorized  by  the  Hous- 
ing Act,  and  it  must  acquire  a  detailed 
knowledge  of  the  legal  authority  of  each  par- 
ticipant to  build  various  categories  of  public 
works.  These  are  essentially  the  kinds  of 
knowledge  and  relationships  which  are  es- 
sential to  the  successful  administration  of 
advances  for  non-Federal  public  works. 

The  consolidation  of  the  responsibility  for 
advance  planning  activities  with  slum  clear- 


ance and  urban  redevelopment  functions  will 
make  it  possible  to  assure  the  integration  of 
two  programs  which  are  not  only  closely  re- 
lated in  their  objectives  but  now  overlap  to 
some  extent.  A  single  responsible  agency 
will  be  able  to  assure  that  the  authority  under 
both  statutes  will  be  used  to  the  maximum 
advantage  of  both  the  Federal  Government 
and  the  state  and  local  public  bodies  which 
seek  to  participate  in  the  benefits. 

The  plan  will  also  make  possible  the  unifi- 
cation of  the  administrative  structure  and 
field  organization  needed  to  administer  the 
two  programs.  Moreover,  the  emergence 
of  a  single  community  development  agency 
will  make  it  possible  for  public  bodies  to 
deal  with  fewer  Federal  oflScials  in  the  ad- 
vance planning  of  their  public  facilities,  the 
elimination  of  blighted  areas,  and  the  pro- 
motion of  well-balanced  residential  neigh- 
borhoods. The  plan  will  consequently  lead 
to  improvements  in  one  important  sector 
of  Federal-state  and  Federal-local  relations. 

The  second  transfer  provided  for  by 
Reorganization  Plan  No.  17  relates  to  the 
management  and  disposal  of  sewers,  schools, 
hospitals  and  other  community  facilities  con- 
structed under  Title  II  of  the  Lanham  Act 
of  1940,  as  amended.  Its  effect  will  be  to 
consolidate  these  functions  in  the  Housing 
and  Home  Finance  Agency,  which  is  al- 
ready responsible  for  over  95  percent  of  re- 
maining Lanham  Act  properties.  The  fact 
that  approximately  30  percent  of  the  war 
public  works  still  in  the  possession  of  the 
General  Services  Administration  are  depend- 
ent upon  war  housing  projects  managed  by 
the  Housing  and  Home  Finance  Agency 
further  illustrates  the  closeness  of  relation- 
ships between  the  current  Lanham  Act  func- 
tions of  the  two  agencies. 

An  additional  consideration  in  support  of 
the  transfer  is  the  evolution  of  the  Housing 
and  Home  Finance  Agency  as  the  unit  of  the 
Federal  Government  best  prepared  to  nego- 


214 


Harry  S.  Truman,  ig^o 


Mar.  13    [70] 


tiate  with  local  officials  on  matters  affecting 
a  wide  variety  of  community  facilities — a 
preparedness  which  will  be  further  enhanced 
by  the  transfer  of  advance  planning  func- 
tions. The  reorganization  plan  will  thus 
lead  to  improvements  in  the  capacity  of  the 
Government  to  manage  and  dispose  of  the 
public  facilities  still  in  its  possession  in  a 
manner  which  will  simultaneously  protect  its 
interests  and  advance  the  development  of 
the  communities  in  which  the  projects  are 
situated. 


The  transfer  of  these  programs  to  the 
agencies  where  they  can  be  administered 
with  other  related  activities  will  lead  to  the 


simplification  of  administrative  arrange- 
ments, the  reduction  of  unwarranted  delays, 
and  the  curtailment  of  the  duplication  in- 
herent in  divided  responsibility.  The  re- 
sult will  be  greater  ultimate  benefits  from 
the  execution  of  the  programs.  These  con- 
siderations, together  with  the  beneficial  ef- 
fect which  the  reorganizations  will  have  on 
the  General  Services  Administration,  lead 
me  to  commend  Reorganization  Plans  15, 
16,  and  17  to  the  Congress  as  important  and 
constructive  steps  in  our  program  of  man- 
agement reform  in  the  Executive  Branch. 

Harry  S.  Truman 

note:  For  further  messages  on  Reorganization  Plans 
15,  16,  and  17,  see  Items  70-72. 


70    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  15  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  15  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949.  The  plan 
transfers  the  functions  of  the  General  Serv- 
ices Administration  relating  to  public  works 
in  Alaska  and  in  the  Virgin  Islands  to  the 
Department  of  the  Interior.  My  reasons  for 
transmitting  this  plan  are  stated  in  an  ac- 
companying general  message. 

After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  15  of 
1950  is  necessary  to  accomplish  one  or  more 
of  the  purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 

The  savings  to  be  realized  from  the  trans- 
fers provided  for  in  the  plan  cannot  be  pre- 
dicted in  detail  at  this  time.  The  small  size 
and  restricted  character  of  the  Virgin  Islands 
public  works  program  will  prevent  large  re- 
ductions in  administrative  expenditures. 
However,  by  placing  the  responsibility  for 


the  activity  in  the  department  generally  con- 
cerned with  the  government  and  welfare  of 
the  Islands,  the  plan  will  lead  to  a  closer 
integration  of  the  public  works  program 
with  verified  needs. 

The  Alaska  public  works  program  is  new 
and  will  continue  to  grow  for  some  time. 
As  a  result  the  overall  costs  of  administration 
will  increase  under  any  organizational  ar- 
rangements which  may  be  established.  The 
concentration  of  responsibility  in  the  Depart- 
ment already  charged  with  the  execution  of 
related  programs  in  Alaska  and  required  by 
law  to  approve  all  projects  constructed  under 
the  Alaska  Public  Works  Act  of  1949  should, 
however,  simplify  relationships  and  lead  to 
more  economical  administration  than  would 
otherwise  be  possible. 

Harry  S.  Truman 

note:  Reorganization  Plan  15  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1267)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1007).  It  became  ef- 
fective on  May  24,  1950. 


215 


[7i]    Mar.  13 


Public  Papers  of  the  Presidents 


71     Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  16  of  1950.    March  13, 1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  16  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949.  The  plan 
transfers  to  the  Federal  Security  Agency  the 
functions  of  the  General  Services  Adminis- 
tration relating  to  assistance  to  local  school 
districts  and  grants  and  loans  for  water  pollu- 
tion control  projects.  My  reasons  for  trans- 
mitting this  plan  are  stated  in  an  accompany- 
ing general  message. 

After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  16  of 
1950  is  necessary  to  accomplish  one  or  more 
of  the  purposes  set  forth  in  section  2(a)  of 
the  Reorganization  Act  of  1949. 

The  transfer  of  the  responsibility  for  mak- 
ing payments  to  local  school  districts  whose 
operating  deficits  are  due  in  part  to  Federal 
activities  is  unlikely  to  result  in  an  immediate 
reduction  in  expenditures  for  the  administra- 
tion of  the  program.  However,  by  placing 
the  function  in  the  agency  of  the  Govern- 


ment best  informed  in  matters  of  public 
school  administration  and  presendy  charged 
with  the  payment  of  other  grants  for  educa- 
tional purposes,  the  plan  will  provide  addi- 
tional assurance  that  the  funds  appropriated 
for  assistance  to  overburdened  school  dis- 
tricts will  be  most  advantageously  expended. 
The  relative  newness  and  expanding  char- 
acter of  the  water  pollution  control  program 
prevents  the  itemization  of  the  reductions  in 
expenditures  which  will  follow  the  consolida- 
tion of  responsibility  for  this  activity.  It  is 
expected  that  the  elimination  of  overlapping 
and  the  simplification  of  relationships  which 
will  result  from  the  transfer  will  make  it 
possible  to  administer  grants  and  loans  more 
expeditiously  and  at  lower  costs  per  project 
than  can  be  done  under  the  present  division 
of  responsibility. 

Harry  S.  Truman 

note:  Reorganization  Plan  i6  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1268)  and  in 
the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1008).  It  became  ef- 
fective on  May  24,  1950. 


72    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  17  of  1950.    March  13, 1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  17  of  1950,  prepared  in  accordance  with 
the  Reorganization  Act  of  1949.  The  plan 
transfers  the  functions  of  the  General  Serv- 
ices Administration  relating  to  the  advance 
planning  of  non-Federal  public  works  and 
the  management  and  disposal  of  certain  war 
public  works  to  the  Housing  and  Home  Fi- 
nance Agency.  My  reasons  for  transmitting 
this  plan  are  stated  in  an  accompanying 
general  message. 


After  investigation  I  have  found  and 
hereby  declare  that  each  reorganization  in- 
cluded in  Reorganization  Plan  No.  17  is 
necessary  to  accomplish  one  or  more  of  the 
purposes  set  forth  in  section  2(a)  of  the 
Reorganization  Act  of  1949. 

The  first  of  the  transfers  provided  for  by 
this  plan  will  result  in  the  more  economical 
administration  of  those  activities  of  the  Fed- 
eral Government  which  are  concerned  with 
the  over-all  planning  and  development  of 
communities.    The  concentration  of  respon- 


216 


Harry  5.  Truman,  ig^o 


Mar.  13    [73] 


sibility  in  a  single  agency  will  make  it  pos- 
sible to  so  integrate  administration  as  to 
avoid  duplication  of  technical  staffs  and  to 
simplify  relationships  with  state  and  local 
agencies.  Moreover,  by  reducing  the  likeli- 
hood that  the  two  programs  involved  will 
be  administered  at  cross-purposes  or  in  con- 
flict with  each  other,  it  can  be  expected  that 
the  money  expended  will  achieve  greater 
benefits  than  would  be  likely  under  the  pres- 
ent distribution  of  responsibility.  It  is  not, 
however,  possible  to  itemize  the  reduction 
in  expenditures  which  will  result,  chiefly 
because  both  programs  are  of  recent  origin 
and  are  still  undergoing  expansion. 

The  transfer  of  the  war  public  works  func- 
tions will  lead  to  modest  savings  by  consoli- 


dating the  responsibility  for  the  management 
and  disposal  of  all  properties  built  or  ac- 
quired under  the  Lanham  Act  of  1940,  as 
amended,  in  the  agency  which  already  has 
the  greater  part  of  the  total  job.  The  fact 
that  it  will  become  possible  to  manage  and 
dispose  of  public  facilities  serving  emergency 
housing  developments  without  the  inter- 
agency negotiation  which  is  now  necessary 
will  lead  to  economies,  although  they  cannot 
be  itemized  or  predicted  with  exactness. 

Harry  S.  Truman 

note:  Reorganization  Plan  17  of  1950  is  published 
in  the  U.S.  Statutes  at  Large  (64  Stat.  1269)  and 
in  the  1 949-1 953  Compilation  of  title  3  of  the  Code 
of  Federal  Regulations  (p.  1008).  It  became  ef- 
fective on  May  24,  1950. 


73    Special  Message  to  the  Congress  Transmitting  Reorganization 
Plan  18  of  1950.    March  13,  1950 


To  the  Congress  of  the  United  States: 

I  transmit  herewith  Reorganization  Plan 
No.  18  of  1950,  prepared  in  accordance  with 
the  provisions  of  the  Reorganization  Act  of 
1949.  The  plan  transfers  to  the  Administra- 
tor of  General  Services  the  functions  of  the 
various  Federal  agencies  with  respect  to 
leasing  and  assigning  general  purpose  space 
in  buildings  and  the  operation,  maintenance 
and  custody  of  office  buildings.  Since  such 
authority  is  already  largely  concentrated  in 
the  General  Services  Administration  with 
respect  to  the  District  of  Columbia,  the  plan 
principally  relates  to  the  administration  of 
these  functions  in  the  field. 

The  transfers  made  by  this  plan  will  pro- 
mote more  economical  leasing,  better  utiliza- 
tion of  building  space,  and  more  efficient 
operation  of  Government-controlled  office 
buildings.  They  will  effectuate  the  recom- 
mendations of  the  Commission  on  Organi- 
zation of  the  Executive  Branch  of  the  Gov- 
ernment with  respect  to  concentrating  in 


the  General  Services  Administration  the  re- 
sponsibility for  space  allotment  and  the  op- 
eration of  Government  buildings  outside  of 
the  District  of  Columbia.  Likewise,  they 
will  extend  the  principles  laid  down  by  the 
Congress  in  enacting  the  Federal  Property 
and  Administrative  Services  Act  of  1949  to 
another  important  area  of  Government-wide 
administrative  services — the  administration 
of  Government  office  buildings  and  general 
purpose  building  space  in  the  field. 

Within  the  District  of  Columbia,  one 
agency,  the  Public  Buildings  Service  of  the 
General  Services  Administration,  has  long 
had  the  operation  and  custody  of  most  Gov- 
ernment buildings  and  the  leasing  and  as- 
signment of  space  for  executive  agencies. 
Thus,  nearly  all  requests  for  building  space 
are  handled  by  a  single  organization  which 
is  responsible  for  seeing  that  agencies  are 
properly  and  efficiently  housed.  This  ar- 
rangement has  proved  its  worth  and  has 
repeatedly  been  approved  by  the  Congress. 


41-355— G5- 


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217 


[73]    Mar.  13 


Public  Papers  of  the  Presidents 


Outside  of  the  National  Capital,  however, 
responsibility  for  the  acquisition  and  con- 
trol of  building  space  and  the  operation  of 
Government  buildings  is  v^idely  diffused.  A 
variety  of  agencies  operate  and  control  gen- 
eral purpose  buildings.  If  quarters  are  not 
available  in  Federal  buildings,  each  agency 
ordinarily  does  its  ov^n  leasing.  As  a  result, 
in  some  cases  Federal  agencies  have  con- 
tracted for  space  at  high  rentals  at  the  very 
time  that  other  agencies  have  been  giving  up 
surplus  low-cost  space. 

The  assignment  of  space  in  Government- 
owned  buildings  outside  of  Washington  is 
also  divided  among  a  number  of  agencies. 
While  the  Public  Buildings  Service  con- 
structs a  large  part  of  the  Government  build- 
ings, it  operates  and  controls  the  assignment 
of  space  in  only  a  small  proportion  of  them. 
The  Post  Office  Department  operates  and 
allocates  the  space  in  post  office  buildings, 
several  hundred  of  which  contain  substan- 
tial amounts  of  office  space  available  for  other 
agencies.  During  and  immediately  after  the 
war  several  other  Federal  agencies  acquired 
office  buildings  in  the  field.  As  their  activi- 
ties have  contracted,  surplus  space  in  many 
of  these  structures  has  become  available  for 
other  uses. 

This  plan  concentrates  in  the  General 
Services  Administration  the  responsibility 
for  the  leasing  and  assignment  of  what  is 
termed  general  purpose  building  space,  that 
is,  space  which  is  suitable  for  the  uses  of 
a  number  of  Federal  agencies.  It  specifically 
excludes  space  in  buildings  at  military  posts, 
arsenals,  navy  yards,  and  similar  defense 
installations  and  space  in  hospitals,  labora- 
tories, factories  and  other  special  purpose 
buildings. 

Also,  the  plan  excludes  the  Post  Office 
Department  from  the  transfer  of  leasing  au- 
thority since  the  Department  has  a  highly 
developed  organization  for  this  purpose,  and 
it  limits  the  transfer  of  space  assignment 


authority  in  post  office  buildings  to  the  space 
not  occupied  by  the  Department.  Further, 
it  gives  the  needs  of  the  Post  Office  Depart- 
ment priority  in  the  assignment  of  space  in 
post  office  buildings.  Thus,  the  plan  amply 
safeguards  the  interests  of  the  Post  Office 
Department  while  making  it  possible  to 
include  the  general  office  space  in  post  office 
buildings  in  any  given  city  with  other  simi- 
lar space  under  Federal  control  in  planning 
and  executing  an  efficient  program  for  hous- 
ing Government  agencies  in  that  area. 

In  addition,  the  plan  transfers  to  the  Gen- 
eral Services  Administration  the  operation, 
maintenance,  and  custody  of  office  buildings 
owned  or  leased  by  the  Government,  includ- 
ing those